International GAAP 2020

Chapter 53Financial instruments: Hedge accounting

• 1 INTRODUCTION
  • 1.1 Background
  • 1.2 What is hedge accounting?
  • 1.3 Development of hedge accounting standards
  • 1.4 Objective of hedge accounting
  • 1.5 Hedge accounting overview
• 2 HEDGED ITEMS
  • 2.1 General requirements
  • 2.2 Risk components
    • 2.2.1 General requirements
    • 2.2.2 Contractually specified risk components
    • 2.2.3 Non-contractually specified risk components
      • 2.2.3.A Non-contractual risk components in financial instruments
      • 2.2.3.B Non-contractual risk components in non-financial instruments
    • 2.2.4 Partial term hedging
    • 2.2.5 Foreign currency as a risk component
    • 2.2.6 Inflation as a risk component
    • 2.2.7 Interest rate risk component in an insurance contract
  • 2.3 Components of a nominal amount
    • 2.3.1 General requirement
    • 2.3.2 Layer component for fair value hedges
  • 2.4 The ‘sub-LIBOR issue’
    • 2.4.1 Late hedges of benchmark portions of fixed rate instruments
    • 2.4.2 Negative interest rates
  • 2.5 Groups of items
    • 2.5.1 General requirements
    • 2.5.2 Hedging a component of a group
    • 2.5.3 Cash flow hedge of a net position
    • 2.5.4 Nil net positions
  • 2.6 Other eligibility issues for hedged items
    • 2.6.1 Highly probable
    • 2.6.2 Hedged items held at fair value through profit or loss
      • 2.6.2.A Hedged items managed on a fair value basis
      • 2.6.2.B Hedged items held for trading
      • 2.6.2.C Hedged items that have failed the contractual cash flows test
    • 2.6.3 Hedges of exposures affecting other comprehensive income
    • 2.6.4 Hedges of a firm commitment to acquire a business ...