cash flow hedge of a highly probable asset purchase: why is in a hedging situation when the hedging instrument has a gain of say 8 and the hedged item has a unrecognised loss of 10 i.e gain is lower than loss but still it is referred to as a FULLY EFFECTIVE HEDGE?
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Hedging effectiveness
Ias 39 gives 80 – 125 % range for effectiveness,
note that it is changed in IFRS9 but that is not examinable for dec14 attempt
11y ago#2Quarter up/quarter up is the range previously accepted as being effective
I was sitting here looking in google to see if there were a link that I could send to you and then thought "Why can rameez himself not find an appropriate article" - so that's what I'm going to recommend!
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