Derivatives

I see no hedging in the F7 syllabus! Here’s the relevant extract from that syllabus

Section B, part 5:

Financial Instruments:

a) Explain the need for an accounting standard on financial instruments

b) Define financial instruments in terms of financial assets and financial liabilities

c) Explain and account for the factoring of receivables

d) Indicate for the following categories of financial instruments how they should be measured and how any gains and losses from subsequent measurement should be treated in the financial statements:

i) amortised cost
ii) fair value through other comprehensive income ( including where an irrevocable election has been made for equity instruments that are not held for trading)
iii) fair value through profit or loss

e) Distinguish between debt and equity capital

f) Apply the requirements of relevant accounting standards to the issue and finance costs of:

i) equity
ii) redeemable preference shares and debt instruments with no conversion rights (principle of amortised cost)
iii) convertible debt

What do you think?