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Discontinue on hedging accounting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Discontinue on hedging accounting

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • October 14, 2020 at 4:09 am #588806
    toushiga
    Participant
    • Topics: 424
    • Replies: 172
    • ☆☆☆☆

    Hello Sir,I would like to ask what will be happen to the Financial asset or liability that recognised in the SOFP while discontinuing to use of hedging accounting?will they be derecognised from the FS or still recognised on it? I.e the FV of the swaps will be derecognised and debit cash received?

    Thank you.

    October 14, 2020 at 6:44 pm #588910
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3396
    • ☆☆☆☆☆

    The asset or liability will continue to be recognised. However, for example, in a cash flow hedge gains or losses will be in P&L not OCI.

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