• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Fair Value Hedging

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Fair Value Hedging

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 18, 2015 at 2:54 pm #246895
    yellow
    Participant
    • Topics: 53
    • Replies: 68
    • ☆☆

    Hello Mike
    Hope you are fine.

    My question is about the accounting entries for fair value hedge.
    For example suppose the fair value of an asset (hedged item) at the beginning of the year is 100$. At the year end, the fair value of the hedged item becomes $80 and the fair value of the hedging instrument increases by $25.

    Are the following accounting entries OK?

    Dr Hedging instrument (SoFP) $25
    Cr Hedged item (SoFP) $20
    Cr net gain (P&L) $5

    And if the above entries are correct, then would you please let me know how we should recognise the hedging instrument in the SoFP? It should be recognised as ”Financial asset” in the ”Current Asset” section, yes ??

    Thank you in advance

    May 18, 2015 at 8:23 pm #246959
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    “Current asset” may not be appropriate if it cannot be realized within thelve months

    Otherwise, it seems ok to me!

    May 19, 2015 at 12:11 pm #247159
    yellow
    Participant
    • Topics: 53
    • Replies: 68
    • ☆☆

    Thank you Mike 😉

    May 19, 2015 at 7:55 pm #247241
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    You’re welcome

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in