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Do we recycle gains accumulated to OCI for cash flow hedge accounting only or we do the same for gains accumulated to oci (in case of investment in financial asset though fvtoci)for fair value hedge accounting.
ann with regards to transfer of gains and losses from oci to P&L do we do that prospectively , cud you please provide the double entries for cash flow hedge accounting,
form initial recognition to the day the future transaction is recognised and transfer of gain from oci to P&L occurs?
On recognition of the item in a cash flow hedge the gains/losses recognised through OCI are recycled through profit or loss.
I’d not try and understand the double entries too much but just understand the basic concept as follows:
Initial – no entries recorded
Reporting date – record the instrument at fair value with gains/losses going to OCI (effective element only)
Transaction – record the item and remeasure the instrument, then recycle the gains/losses from OCI to SPL.