Forward Contract Accounting: Follow IAS 21 or Hedge Accounting

Dear Sir,

Currently, I am quite confused with a problem related to forward contract when learning the Hedge Accounting.

For an example, say we have a supplier payable in 3 months amount 100 USD. We speculate that the USD will be much stronger after 3 months, so we sign a forward contract with bank with the forward rate 1USD=22CU (domestic currency unit).

If I follow the Para 26 IAS 21, at the reporting date, we would translate 100 USD to CU @ rate 22 (as it is the rate the payable amount “could have been settled”). I think it is logical and simple, also it reflects correctly the CU amount we have to pay in future.

But if I follow the hedge accounting, in this case it is the fair value hedging. It requires to know the spot rate and forward rate @ the reporting date and we have to make some more complicated entries such as adjusting the value of the payable and recognizing the financial asset/liability of the forward contract.

I am not sure which one is correct?