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Hi Tutor
I would like to know whether testing of hedging and derivative will be of same extent as that of AFM exam? or we just need to have a look into basic knowledge? Please help as i already gave AFM exam so i wonder if same level of knowledge will be tested in SBR? If yes do we need to refer to AFM lectures? Though SBR OT lecture on derivatives and hedging are good but i believe they are too precise as compared to AFM lectures by Sir John.
Please clarify
Thank you
You need to know:
FV hedge – remeasure asset and derivative; gains and losses to P&L (except where asset is shares held as FVTOCI)
CF hedge – remeasure derivative; gain or loss to OCI and later recycled to P&L
And:
1. Definition of derivative
2. That hedge must be effective.They won’t ask you about characteristics of individual derivatives.
So nice and simple.
I didn’t know that John had been knighted by the Queen – but he deserves it!
Thank you Sir.
In Fact all tutors are amazing thats why from the very start of my ACCA journey i am a student of OT and passed 11 exams in 2.5 years.
thanks to all tutors
hoping to pass SBR in june 2020.
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