Just clarify if i have this right sir.
So a "fair value" hedging arrangement, gains/(losses) on both the hedge item & instrument are taken to P&L?
For a "cash flow" hedging arrangement, gains/(losses) on the hedging instrument are taken to OCI. When the instrument is actually closed out/settled, any gains/(losses) on the purchase/sale of the hedged item is reported in P&L but now, any previously recognized gains/(losses) in OCI relative to the instrument are now reclassified to P&L?
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Hedge Accounting
7y ago#1Excellent! Quote that in the exam where it's relevant and you're off to a good start.
Thanks
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