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Hedge Item

Former userFormer user4y ago

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stephenwidbergstephenwidbergTutor4y ago#1
It will. If equity instrument is FVOCI, revalue both item and instrument and all gains and losses go to OCI. If equity instrument is FVPL, revalue both item and instrument and all gains and losses go to P&L.
stephenwidbergstephenwidbergTutor4y ago#2
If you own shares and are worried about their fair value, you could (say) enter into a forward contract to sell those. In these circumstances you can use FV hedge accounting. For FVOCI and FVPL please review our notes and lectures on financial instruments.
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