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Hey
I understand as soon as the hedging is canceled than hedge accounting needs to be stopped and it’s done so prospectively.
However the 2nd paragraph about eh sub being an hedged item, that’s not making sense..
Can a sub be an hedged item and also how will we treat it
Please explain
I hope m not asking too many questions. I have just moved on to exam kit questions. Most of them I m happy with just few here and there. Especially fianucal instrument seems to be giving abit of jitters.
Hi
The second paragraph in the printed solution specifically states that IAS 39 DOES NOT ALLOW an investment in an associate to be treated as a hedge
Have you misread the answer?
Hey Mike
Thanks for your reply.
I understand that bit. However surely to gain 5 marks just saying that won’t be enough. So far I’m assuming I would have gained 3 marks.
Given that question 3 part b is worth 6 marks, and that the second part of part b is effectively a non-question, the mark allocation can not reasonably be weighted wildly different than 4.5 / 1.5
At worst, 4 / 2
You say you’ve scored 3 so far. Another 1 for saying “investments in acquiring interests in subsidiaries and associates cannot be classified as hedges” and that gets you up from 50% to 67%
Would you be happy with 67%?
Write down the obvious. If it’s a 3 mark question, you need three markable, relevant, correct points (so three sentences)
In a 6 marker like this one, you need six sentences, each with a markable point (just ONE markable point) within that sentence and, of course, you need to address both (all) parts of the question
Ok?
Offcourse more than happy even with 4 marks. Just wanted to see what I was missing.
Thank you for your time. I will bother you again if I need help with other questions 🙂
Thank you.
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