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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › F.V hedge
hi chris,
hope you doing well.
in the event of unrecognized firm commitment to purchase item of PPE (f.v hedge), is the journal going to be Dr financial assets and Cr p/l with full gain on the instrument?
That’s a very hard question!
I would treat as cash flow hedge – Dr FA Cr OCI
Fair value hedge is horrible – Dr FA Cr P&;L AND Dr P&L Cr Firm commitment liability with the same number – it’s crazy.
If a candidate knew that I would eat my hat. It took me 30 years to get my head round it.
Would I worry about it – no!