Chapter 6 Hedge Accounting IG (FINAL Draft)
Chapter 6 Hedge Accounting IG (FINAL Draft)
Chapter 6 Hedge Accounting IG (FINAL Draft)
IFRS 9
CHAPTER 6
HEDGE ACCOUNTING
Implementation Guidance
1 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
GUIDANCE ON IMPLEMENTING
IFRS 9 FINANCIAL INSTRUMENTS
Illustrative examples
Appendix:
Amendments to the guidance on other IFRSs
Tables of Concordance
IFRS Foundation 2
HEDGE ACCOUNTING
1
In this guidance monetary amounts are denominated in currency units (CU).
2
This reflects a shift in LIBOR from 5 per cent to 4.75 per cent and a movement of 0.15 per cent which, in the absence of other relevant changes
in market conditions, is assumed to reflect changes in credit risk of the instrument.
3 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
[paragraph B5.7.18(c)]
The difference between the observed The market price of the liability at the end
market price of the liability at the end of of the period is CU153,811.(c)
the period and the amount determined in Thus, the entity presents CU1,444 in
accordance with paragraph B5.7.18(b) is other comprehensive income, which is
the change in fair value that is not
CU153,811 CU152,367, as the
attributable to changes in the observed
increase in fair value of the bond that is
(benchmark) interest rate. This is the
not attributable to changes in market
amount to be presented in other
conditions that give rise to market risk.
comprehensive income in accordance
with paragraph 5.7.7(a).
IFRS Foundation 4
HEDGE ACCOUNTING
Example 1combined commodity price risk and foreign currency risk hedge (cash
flow hedge/cash flow hedge combination)
Fact pattern
IE7 Entity A wants to hedge a highly probable forecast coffee purchase (which is
expected to occur at the end of Period 5). Entity As functional currency is its Local
Currency (LC). Coffee is traded in Foreign Currency (FC). Entity A has the following
risk exposures:
(a) commodity price risk: the variability in cash flows for the purchase price, which
results from fluctuations of the spot price of coffee in FC; and
(b) foreign currency (FX) risk: the variability in cash flows that results from
fluctuations of the spot exchange rate between LC and FC.
IE8 Entity A hedges its risk exposures using the following risk management strategy:
(a) Entity A uses benchmark commodity forward contracts, which are denominated
in FC, to hedge its coffee purchases four periods before delivery. The coffee
price that Entity A actually pays for its purchase is different from the benchmark
price because of differences in the type of coffee, the location and delivery
arrangement.3 This gives rise to the risk of changes in the relationship between
the two coffee prices (sometimes referred to as basis risk), which affects the
effectiveness of the hedging relationship. Entity A does not hedge this risk
because it is not considered economical under cost/benefit considerations.
(b) Entity A also hedges its FX risk. However, the FX risk is hedged over a
different horizononly three periods before delivery. Entity A considers the FX
exposure from the variable payments for the coffee purchase in FC and the
gain or loss on the commodity forward contract in FC as one aggregated FX
exposure. Hence, Entity A uses one single FX forward contract to hedge the
FX cash flows from a forecast coffee purchase and the related commodity
forward contract.
IE9 The following table sets out the parameters used for Example 1 (the basis spread is
the differential, expressed as a percentage, between the price of the coffee that
Entity A actually buys and the price for the benchmark coffee):
Example 1Parameters
Period 1 2 3 4 5
Interest rates for remaining maturity [FC] 0.26% 0.21% 0.16% 0.06% 0.00%
Interest rates for remaining maturity [LC] 1.12% 0.82% 0.46% 0.26% 0.00%
Forward price [FC/lb] 1.25 1.01 1.43 1.22 2.15
Basis spread -5.00% -5.50% -6.00% -3.40% -7.00%
FX rate (spot) [FC/LC] 1.3800 1.3300 1.4100 1.4600 1.4300
Accounting mechanics
3
For the purpose of this example it is assumed that the hedged risk is not designated based on a benchmark coffee price risk component.
Consequently, the entire coffee price risk is hedged.
5 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
IE10 Entity A designates as cash flow hedges the following two hedging relationships:4
(a) A commodity price risk hedging relationship between the coffee price related
variability in cash flows attributable to the forecast coffee purchase in FC as the
hedged item and a commodity forward contract denominated in FC as the
hedging instrument (the first level relationship). This hedging relationship is
designated at the end of Period 1 with a term to the end of Period 5. Because
of the basis spread between the price of the coffee that Entity A actually buys
and the price for the benchmark coffee, Entity A designates a volume of
112,500 pounds (lbs) of coffee as the hedging instrument and a volume of
118,421 lbs as the hedged item.5
(b) An FX risk hedging relationship between the aggregated exposure as the
hedged item and an FX forward contract as the hedging instrument (the
second level relationship). This hedging relationship is designated at the end
of Period 2 with a term to the end of Period 5. The aggregated exposure that is
designated as the hedged item represents the FX risk that is the effect of
exchange rate changes, compared to the forward FX rate at the end of Period 2
(ie the time of designation of the FX risk hedging relationship), on the combined
FX cash flows in FC of the two items designated in the commodity price risk
hedging relationship, which are the forecast coffee purchase and the
commodity forward contract. Entity As long-term view of the basis spread
between the price of the coffee that it actually buys and the price for the
benchmark coffee has not changed from the end of Period 1. Consequently,
the actual volume of hedging instrument that Entity A enters into (the nominal
amount of the FX forward contract of FC140,625) reflects the cash flow
exposure associated with a basis spread that had remained at -5 per cent.
However, Entity As actual aggregated exposure is affected by changes in the
basis spread. Because the basis spread has moved from -5 per cent to -5.5
per cent during Period 2, Entity As actual aggregated exposure at the end of
Period 2 is FC140,027.
IE11 The following table sets out the fair values of the derivatives, the changes in the
value of the hedged items and the calculation of the cash flow hedge reserves and
hedge ineffectiveness:6
4
This example assumes that all qualifying criteria for hedge accounting are met (see IFRS 9.6.4.1). The following description of the designation is
solely for the purpose of understanding this example (ie it is not an example of the complete formal documentation required in accordance with
IFRS 9.6.4.1(b)).
5
In this example, the current basis spread at the time of designation is coincidentally the same as Entity As long-term view of the basis spread (-5
per cent) that determines the volume of coffee purchases that it actually hedges. Also, this example assumes that Entity A designates the hedging
instrument in its entirety and designates as much of its highly probable forecast purchases as it regards as hedged. That results in a hedge ratio of
1/(100%-5%). Other entities might follow different approaches when determining what volume of their exposure they actually hedge, which can
result in a different hedge ratio and also designating less than a hedging instrument in its entirety (see IFRS 9.B6.4.10).
6
In the following table for the calculations all amounts (including the calculations for accounting purposes of amounts for assets, liabilities, equity
and profit or loss) are in the format of positive (plus) and negative (minus) numbers (eg a profit or loss amount that is a negative number is a loss).
IFRS Foundation 6
HEDGE ACCOUNTING
Example 1Calculations
Period 1 2 3 4 5
Accounting LC LC LC LC LC
Derivative 0 -20,258 14,339 -2,310 70,804
Cash flow hedge reserve 0 -20,258 13,140 -728 67,243
Change in cash flow hedge reserve -20,258 33,399 -13,868 67,971
Profit or loss 0 1,199 -2,781 5,143
Retained earnings 0 0 1,199 -1,582 3,561
Hedged FX risk
Aggregated FX exposure Hedged volume [FC] 140,027 138,932 142,937 135,533
Accounting LC LC LC LC
Derivative 0 -6,313 -9,840 -8,035
Cash flow hedge reserve 0 -6,237 -9,840 -7,744
Change in cash flow hedge reserve -6,237 -3,604 2,096
Profit or loss -76 76 -291
Retained earnings 0 -76 0 -291
IE12 The commodity price risk hedging relationship is a cash flow hedge of a highly
probable forecast transaction that starts at the end of Period 1 and remains in place
when the FX risk hedging relationship starts at the end of Period 2, ie the first level
relationship continues as a separate hedging relationship.
IE13 The volume of the aggregated FX exposure (in FC), which is the hedged volume of
the FX risk hedging relationship, is the total of:7
7
For example, at the end of Period 3 the aggregated FX exposure is determined as: 118,421 lbs 1.34 FC/lb = FC159,182 for the expected price
of the actual coffee purchase and 112,500 lbs (1.25 [FC/lb] - 1.43 [FC/lb]) = FC-20,250 for the expected price differential under the commodity
forward contract, which gives a total of FC138,932the volume of the aggregated FX exposure and the end of Period 3.
7 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
(a) the hedged coffee purchase volume multiplied by the current forward price (this
represents the expected spot price of the actual coffee purchase); and
(b) the volume of the hedging instrument (designated nominal amount) multiplied
by the difference between the contractual forward rate and the current forward
rate (this represents the expected price differential from benchmark coffee price
movements in FC that Entity A will receive or pay under the commodity forward
contract).
IE14 The present value (in LC) of the hedged item of the FX risk hedging relationship (ie
the aggregated exposure) is calculated as the hedged volume (in FC) multiplied by
the difference between the forward FX rate at the measurement date and the forward
FX rate at the designation date of the hedging relationship (ie the end of Period 2).8
IE15 Using the present value of the hedged item and the fair value of the hedging
instrument, the cash flow hedge reserve and the hedge ineffectiveness are then
determined (see paragraph 6.5.11 of IFRS 9).
IE16 The following table shows the effect on Entity As statement of profit or loss and
other comprehensive income and its statement of financial position (for the sake of
transparency the line items9 are disaggregated on the face of the statements by the
two hedging relationships, ie for the commodity price risk hedging relationship and
the FX risk hedging relationship):
8
For example, at the end of Period 3 the present value of the hedged item is determined as the volume of the aggregated exposure at the end of
Period 3 (FC138,932) multiplied by the difference between the forward FX rate at the end of Period 3 (1/1.4058) and the forward FX rate and the
time of designation (ie the end of Period 2: 1/1.3220) and then discounted using the interest rate (in LC) at the end of Period 3 with a term of 2
periods (ie until the end of Period 50.46 per cent). The calculation is: FC138,932 (1/(1.4058[FC/LC]) - 1/(1.3220 [FC/LC]))/(1 + 0.46%) =
LC6,237.
9
The line items used in this example are a possible presentation. Different presentation formats using different line items (including line items that
include the amounts shown here) are also possible (IFRS 7 Financial Instruments: Disclosures sets out disclosure requirements for hedge
accounting that include disclosures about hedge ineffectiveness, the carrying amount of hedging instruments and the cash flow hedge reserve).
IFRS Foundation 8
HEDGE ACCOUNTING
Equity
Accumulated OCI
Commodity hedge 0 20,258 (13,140) 728 (67,243)
FX hedge 0 6,237 9,840 7,744
0 20,258 (6,904) 10,568 (59,499)
Retained earnings
Commodity hedge 0 0 (1,199) 1,582 (3,561)
FX hedge 0 76 0 291
0 0 (1,123) 1,582 (3,270)
Total equity 0 20,258 (8,027) 12,150 (62,769)
IE18 The total overall cash flow from all transactions (the actual coffee purchase at the
spot price and the settlement of the two derivatives) is LC102,813. It differs from the
hedge adjusted cost of inventory by LC3,270, which is the net amount of cumulative
hedge ineffectiveness from the two hedging relationships. This hedge
ineffectiveness has a cash flow effect but is excluded from the measurement of the
inventory.
Example 2combined interest rate risk and foreign currency risk hedge (fair value
hedge/cash flow hedge combination)
Fact pattern
IE19 Entity B wants to hedge a fixed rate liability that is denominated in Foreign Currency
(FC). The liability has a term of four periods from the start of Period 1 to the end of
10
CFHR is the cash flow hedge reserve, ie the amount accumulated in other comprehensive income for a cash flow hedge.
9 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
Period 4. Entity Bs functional currency is its Local Currency (LC). Entity B has the
following risk exposures:
(a) fair value interest rate risk and FX risk: the changes in fair value of the fixed
rate liability attributable to interest rate changes, measured in LC.
(b) cash flow interest rate risk: the exposure that arises as a result of swapping the
combined fair value interest rate risk and FX risk exposure associated with the
fixed rate liability (see (a) above) into a variable rate exposure in LC in
accordance with Entity Bs risk management strategy for FC denominated fixed
rate liabilities (see paragraph IE20(a) below).
IE20 Entity B hedges its risk exposures using the following risk management strategy:
(a) Entity B uses cross-currency interest rate swaps to swap its FC denominated
fixed rate liabilities into a variable rate exposure in LC. Entity B hedges its FC
denominated liabilities (including the interest) for their entire life. Consequently,
Entity B enters into a cross-currency interest rate swap at the same time as it
issues an FC denominated liability. Under the cross-currency interest rate
swap Entity B receives fixed interest in FC (used to pay the interest on the
liability) and pays variable interest in LC.
(b) Entity B considers the cash flows on a hedged liability and on the related
cross-currency interest rate swap as one aggregated variable rate exposure in
LC. From time to time, in accordance with its risk management strategy for
variable rate interest rate risk (in LC), Entity B decides to lock in its interest
payments and hence swaps its aggregated variable rate exposure in LC into a
fixed rate exposure in LC. Entity B seeks to obtain as a fixed rate exposure a
single blended fixed coupon rate (ie the uniform forward coupon rate for the
hedged term that exists at the start of the hedging relationship).11
Consequently, Entity B uses interest rate swaps (denominated entirely in LC)
under which it receives variable interest (used to pay the interest on the pay leg
of the cross-currency interest rate swap) and pays fixed interest.
IE21 The following table sets out the parameters used for Example 2:
11
An entity may have a different risk management strategy whereby it seeks to obtain a fixed rate exposure that is not a single blended rate but a
series of forward rates that are each fixed for the respective individual interest period. For such a strategy the hedge effectiveness is measured
based on the difference between the forward rates that existed at the start of the hedging relationship and the forward rates that exist at the
effectiveness measurement date for the individual interest periods. For such a strategy a series of forward contracts corresponding with the
individual interest periods would be more effective than an interest rate swap (that has a fixed payment leg with a single blended fixed rate).
IFRS Foundation 10
HEDGE ACCOUNTING
Example 2Parameters
Interest curves
(vertical presentation of
rates for each quarter of a
period on a p.a. basis)
LC 2.50% 5.02% 6.18% 0.34% [N/A]
2.75% 5.19% 6.26% 0.49%
2.91% 5.47% 6.37% 0.94%
3.02% 5.52% 6.56% 1.36%
2.98% 5.81% 6.74%
3.05% 5.85% 6.93%
3.11% 5.91% 7.19%
3.15% 6.06% 7.53%
3.11% 6.20%
3.14% 6.31%
3.27% 6.36%
3.21% 6.40%
3.21%
3.25%
3.29%
3.34%
Accounting mechanics
IE22 Entity B designates the following hedging relationships:12
(a) As a fair value hedge, a hedging relationship for fair value interest rate risk and
FX risk between the FC denominated fixed rate liability (fixed rate FX liability)
as the hedged item and a cross-currency interest rate swap as the hedging
instrument (the first level relationship). This hedging relationship is designated
at the beginning of Period 1 (ie t0) with a term to the end of Period 4.
12
This example assumes that all qualifying criteria for hedge accounting are met (see IFRS 9.6.4.1). The following description of the designation
is solely for the purpose of understanding this example (ie it is not an example of the complete formal documentation required in accordance with
IFRS 9.6.4.1(b)).
11 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
(b) As a cash flow hedge, a hedging relationship between the aggregated exposure
as the hedged item and an interest rate swap as the hedging instrument (the
second level relationship). This hedging relationship is designated at the end
of Period 1, when Entity B decides to lock in its interest payments and hence
swaps its aggregated variable rate exposure in LC into a fixed rate exposure in
LC, with a term to the end of Period 4. The aggregated exposure that is
designated as the hedged item represents, in LC, the variability in cash flows
that is the effect of changes in the combined cash flows of the two items
designated in the fair value hedge of the fair value interest rate risk and FX
risksee (a) above), compared to the interest rates at the end of Period 1 (ie
the time of designation of the hedging relationship between the aggregated
exposure and the interest rate swap).
IE23 The following table13 sets out the overview of the fair values of the derivatives, the
changes in the value of the hedged items and the calculation of the cash flow hedge
reserve and hedge ineffectiveness.14 In this example, hedge ineffectiveness arises
on both hedging relationships.15
Example 2Calculations
t0 Period 1 Period 2 Period 3 Period 4
CFHR
Balance (end of period) [LC] 0 18,824 -58,753 0
Change [LC] 18,824 -77,577 58,753
IE24 The hedging relationship between the fixed rate FX liability and the cross-currency
interest rate swap starts at the beginning of Period 1 (ie t0) and remains in place
when the hedging relationship for the second level relationship starts at the end of
Period 1, ie the first level relationship continues as a separate hedging relationship.
13
Tables in this example use the following acronyms: CCIRS for cross-currency interest rate swap, CF(s) for cash flow(s), CFH for cash flow
hedge, CFHR for cash flow hedge reserve, FVH for fair value hedge, IRS for interest rate swap and PV for present value.
14
In the following table for the calculations all amounts (including the calculations for accounting purposes of amounts for assets, liabilities and
equity) are in the format of positive (plus) and negative (minus) numbers (eg an amount in the cash flow hedge reserve that is a negative number is
a loss).
15
For a situation like in this example, hedge ineffectiveness can result from various factors, for example credit risk, the charge for exchanging
different currencies that is included in cross-currency interest rate swaps (commonly referred to as the currency basis) or differences in the day
count method.
IFRS Foundation 12
HEDGE ACCOUNTING
IE25 The cash flow variability of the aggregated exposure is calculated as follows:
(a) At the point in time from which the cash flow variability of the aggregated
exposure is hedged (ie the start of the second level relationship at the end of
Period 1), all cash flows expected on the fixed rate FX liability and the cross-
currency interest rate swap over the hedged term (ie until the end of Period 4)
are mapped out and equated to a single blended fixed coupon rate so that the
total present value (in LC) is nil. This calculation establishes the single blended
fixed coupon rate (reference rate) that is used at subsequent dates as the
reference point to measure the cash flow variability of the aggregated exposure
since the start of the hedging relationship. This calculation is illustrated in the
following table:
Example 2Cash flow variability of the aggregated exposure (calibration)
The nominal amount that is used for the calibration of the reference rate is the
same as the nominal amount of aggregated exposure that creates the variable
cash flows in LC (LC1,200,000), which coincides with the nominal amount of
the cross-currency interest rate swap for the variable rate leg in LC. This
results in a reference rate of 5.6963 per cent (determined by iteration so that
the present value of all cash flows in total is nil).
(b) At subsequent dates, the cash flow variability of the aggregated exposure is
determined by comparison to the reference point established at the end of
Period 1. For that purpose, all remaining cash flows expected on the fixed rate
FX liability and the cross-currency interest rate swap over the remainder of the
hedged term (ie from the effectiveness measurement date until the end of
Period 4) are updated (as applicable) and then discounted. Also, the reference
13 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
rate of 5.6963 per cent is applied to the nominal amount that was used for the
calibration of that rate at the end of Period 1 (LC1,200,000) in order to generate
a set of cash flows over the remainder of the hedged term that is then also
discounted. The total of all those present values represents the cash flow
variability of the aggregated exposure. This calculation is illustrated in the
following table for the end of Period 2:
Example 2Cash flow variability of the aggregated exposure (at the end of Period 2)
The changes in interest rates and the exchange rate result in a change of the
cash flow variability of the aggregated exposure between the end of Period 1
and the end of Period 2 that has a present value of LC-18,824.16
IE26 Using the present value of the hedged item and the fair value of the hedging
instrument, the cash flow hedge reserve and the hedge ineffectiveness are then
determined (see paragraph 6.5.11 of IFRS 9).
IE27 The following table shows the effect on Entity Bs statement of profit or loss and
other comprehensive income and its statement of financial position (for the sake of
transparency some line items17 are disaggregated on the face of the statements by
16
This is the amount that is included in the table with the overview of the calculations (see paragraph IE23) as the present value of the cash flow
variability of the aggregated exposure at the end of Period 2.
17
The line items used in this example are a possible presentation. Different presentation formats using different line items (including line items
that include the amounts shown here) are also possible (IFRS 7 Financial Instruments: Disclosures sets out disclosure requirements for hedge
accounting that include disclosures about hedge ineffectiveness, the carrying amount of hedging instruments and the cash flow hedge reserve).
IFRS Foundation 14
HEDGE ACCOUNTING
the two hedging relationships, ie for the fair value hedge of the fixed rate FX liability
and the cash flow hedge of the aggregated exposure):18
Example 2Overview of effect on statements of financial performance and financial position
[All amounts in LC]
t0 Period 1 Period 2 Period 3 Period 4
Other gains/losses
Change in fair value of the CCIRS 154,673 (418,788) (91,437) 185,553
FVH adjustment (FX liability) (154,702) 418,733 91,560 (185,591)
Hedge ineffectiveness 25 (72) (54) (19)
Total other gains/losses (4) (127) 68 (57)
Profit or loss 33,198 68,255 68,438 68,313
Equity
Accumulated OCI 0 (18,824) 58,753 0
Retained earnings 0 33,198 101,454 169,892 238,205
Total equity 0 33,198 82,630 228,645 238,205
IE28 The total interest expense in profit or loss reflects Entity Bs interest expense that
results from its risk management strategy:
(a) In Period 1 the risk management strategy results in interest expense reflecting
variable interest rates in LC after taking into account the effect of the cross-
currency interest rate swap. There is also some hedge ineffectiveness that
results from a difference in the changes in value for the fixed rate FX liability (as
represented by the fair value hedge adjustment) and the cross-currency interest
18
For Period 4 the values in the table with the overview of the calculations (see paragraph IE23) differ from those in the following table. For
Periods 1 to 3 the dirty values (ie including interest accruals) equal the clean values (ie excluding interest accruals) because the period end is a
settlement date for all legs of the derivatives and the fixed rate FX liability. At the end of Period 4 the table with the overview of the calculations
uses clean values in order to calculate the value changes consistently over time. For the following table the dirty values are presented, ie the
maturity amounts including accrued interest immediately before the instruments are settled (this is for illustrative purposes as otherwise all carrying
amounts other than cash and retained earnings would be nil).
15 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
rate swap as well as from differences between the cash flows on the two
instruments that were settled during Period 1.
(b) For Periods 2 to 4 the risk management strategy results in interest expense that
reflects, after taking into account the effect of the interest rate swap entered into
at the end of Period 1, fixed interest rates in LC (ie locking in a single blended
fixed coupon rate for a three-period term based on the interest rate environment
at the end of Period 1). However, Entity Bs interest expense is affected by the
hedge ineffectiveness that arises on its hedging relationships. In Period 2 the
interest expense is slightly higher than the fixed rate payments locked in with
the interest rate swap because the variable payments received under the
interest rate swap are less than the total of the cash flows resulting from the
aggregated exposure.19 In Periods 3 and 4 the interest expense is equal to the
locked in rate because the variable payments received under the swap are
more than the total of the cash flows resulting from the aggregated exposure.20
Example 3combined interest rate risk and foreign currency risk hedge (cash flow
hedge/fair value hedge combination)
Fact pattern
IE29 Entity C wants to hedge a variable rate liability that is denominated in Foreign
Currency (FC). The liability has a term of four periods from the start of Period 1 to
the end of Period 4. Entity Cs functional currency is its Local Currency (LC).
Entity C has the following risk exposures:
(a) cash flow interest rate risk and FX risk: the changes in cash flows of the
variable rate liability attributable to interest rate changes, measured in LC.
(b) fair value interest rate risk: the exposure that arises as a result of swapping the
combined cash flow interest rate risk and FX risk exposure associated with the
variable rate liability (see (a) above) into a fixed rate exposure in LC in
accordance with Entity Cs risk management strategy for FC denominated
variable rate liabilities (see paragraph IE30(a) below).
IE30 Entity C hedges its risk exposures using the following risk management strategy:
(a) Entity C uses cross-currency interest rate swaps to swap its FC denominated
variable rate liabilities into a fixed rate exposure in LC. Entity C hedges its FC
denominated liabilities (including the interest) for their entire life. Consequently,
Entity C enters into a cross-currency interest rate swap at the same time as it
issues an FC denominated liability. Under the cross-currency interest rate
swap Entity C receives variable interest in FC (used to pay the interest on the
liability) and pays fixed interest in LC.
(b) Entity C considers the cash flows on a hedged liability and on the related cross-
currency interest rate swap as one aggregated fixed rate exposure in LC. From
time to time, in accordance with its risk management strategy for fixed rate
19
In other words, the cash flow variability of the interest rate swap was lower than, and consequently did not fully offset, the cash flow variability of
the aggregated exposure as a whole (sometimes called an underhedge situation). In those situations the cash flow hedge does not contribute to
the hedge ineffectiveness that is recognised in profit or loss because the hedge ineffectiveness is not recognised (see IFRS 9.6.5.11). The hedge
ineffectiveness arising on the fair value hedge affects profit or loss in all periods.
20
In other words, the cash flow variability of the interest rate swap was higher than, and consequently more than fully offset, the cash flow
variability of the aggregated exposure as a whole (sometimes called an (sometimes called an overhedge situation). In those situations the cash
flow hedge contributes to the hedge ineffectiveness that is recognised in profit or loss (see IFRS 9.6.5.11). The hedge ineffectiveness arising on
the fair value hedge affects profit or loss in all periods.
IFRS Foundation 16
HEDGE ACCOUNTING
interest rate risk (in LC), Entity C decides to link its interest payments to current
variable interest rate levels and hence swaps its aggregated fixed rate
exposure in LC into a variable rate exposure in LC. Consequently, Entity C
uses interest rate swaps (denominated entirely in LC) under which it receives
fixed interest (used to pay the interest on the pay leg of the cross-currency
interest rate swap) and pays variable interest.
IE31 The following table sets out the parameters used for Example 3:
Example 3Parameter overview
Interest curves
(vertical presentation of
rates for each quarter of a
period on a p.a. basis)
LC 2.50% 1.00% 3.88% 0.34% [N/A]
2.75% 1.21% 4.12% 0.49%
2.91% 1.39% 4.22% 0.94%
3.02% 1.58% 5.11% 1.36%
2.98% 1.77% 5.39%
3.05% 1.93% 5.43%
3.11% 2.09% 5.50%
3.15% 2.16% 5.64%
3.11% 2.22%
3.14% 2.28%
3.27% 2.30%
3.21% 2.31%
3.21%
3.25%
3.29%
3.34%
Accounting mechanics
17 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
21
This example assumes that all qualifying criteria for hedge accounting are met (see IFRS 9.6.4.1). The following description of the designation
is solely for the purpose of understanding this example (ie it is not an example of the complete formal documentation required in accordance with
IFRS 9.6.4.1(b)).
22
Tables in this example use the following acronyms: CCIRS for cross-currency interest rate swap, CF(s) for cash flow(s), CFH for cash flow
hedge, CFHR for cash flow hedge reserve, FVH for fair value hedge, IRS for interest rate swap and PV for present value.
23
In the following table for the calculations all amounts (including the calculations for accounting purposes of amounts for assets, liabilities and
equity) are in the format of positive (plus) and negative (minus) numbers (eg an amount in the cash flow hedge reserve that is a negative number is
a loss).
24
Those assumptions have been made for didactical reasons, in order to better focus on illustrating the accounting mechanics in a cash flow
hedge/fair value hedge combination. The measurement and recognition of hedge ineffectiveness has already been demonstrated in Example 1
and Example 2. However, in reality such hedges are typically not perfectly effective because hedge ineffectiveness can result from various factors,
for example credit risk, the charge for exchanging different currencies that in included in cross-currency interest rate swaps (commonly referred to
as the currency basis) or differences in the day count method.
IFRS Foundation 18
HEDGE ACCOUNTING
Example 3Calculations
t0 Period 1 Period 2 Period 3 Period 4
CFHR
Opening balance 0 0 -42,310 -28,207 -14,103
Reclassification FX risk 153,008 -378,220 -91,030 140,731
Reclassification (current period CF) -8,656 -18,410 2,939 21,431
Effective CFH gain/loss -186,662 479,286 20,724 -135,141
Reclassification for interest rate risk 0 -82,656 67,367 -27,021
Amortisation of CFHR 0 14,103 14,103 14,103
Ending balance -42,310 -28,207 -14,103 0
IE34 The hedging relationship between the variable rate FX liability and the cross-
currency interest rate swap starts at the beginning of Period 1 (ie t0) and remains in
place when the hedging relationship for the second level relationship starts at the
end of Period 1, ie the first level relationship continues as a separate hedging
relationship. However, the hedge accounting for the first level relationship is affected
by the start of hedge accounting for the second level relationship at the end of
Period 1. The fair value hedge for the second level relationship affects the timing of
the reclassification to profit or loss of amounts from the cash flow hedge reserve for
the first level relationship:
(a) The fair value interest rate risk that is hedged by the fair value hedge is
included in the amount that is recognised in other comprehensive income as a
result of the cash flow hedge for the first level hedging relationship (ie the gain
or loss on the cross-currency interest rate swap that is determined to be an
effective hedge).25 This means that from the end of Period 1 the part of the
effective cash flow hedging gain or loss that represents the fair value interest
rate risk (in LC), and is recognised in other comprehensive income in a first
step, is in a second step immediately (ie in the same period) transferred from
the cash flow hedge reserve to profit or loss. That reclassification adjustment
offsets the gain or loss on the interest rate swap that is recognised in profit or
25
As a consequence of hedging its exposure to cash flow interest rate risk by entering into the cross-currency interest rate swap that changed the
cash flow interest rate risk of the variable rate FX liability into a fixed rate exposure (in LC), Entity C in effect assumed an exposure to fair value
interest rate risk (see paragraph IE30).
19 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
loss.26 In the context of accounting for the aggregated exposure as the hedged
item, that reclassification adjustment is the equivalent of a fair value hedge
adjustment because in contrast to a hedged item that is a fixed rate debt
instrument (in LC) at amortised cost, the aggregated exposure is already
remeasured for changes regarding the hedged risk but the resulting gain or loss
is recognised in other comprehensive income because of applying cash flow
hedge accounting for the first level relationship. Consequently, applying fair
value hedge accounting with the aggregated exposure as the hedged item does
not result in changing the hedged items measurement but instead affects
where the hedging gains and losses are recognised (ie reclassification from the
cash flow hedge reserve to profit or loss).
(b) The amount in the cash flow hedge reserve at the end of Period 1
(LC42,780.44) is amortised over the remaining life of the cash flow hedge for
the first level relationship (ie over Periods 2 to 4).27
IE35 The change in value of the aggregated exposure is calculated as follows:
(a) At the point in time from which the change in value of the aggregated exposure
is hedged (ie the start of the second level relationship at the end of Period 1),
all cash flows expected on the variable rate FX liability and the cross-currency
interest rate swap over the hedged term (ie until the end of Period 4) are
mapped out and their combined present value, in LC, is calculated. This
calculation establishes the present value that is used at subsequent dates as
the reference point to measure the change in present value of the aggregated
exposure since the start of the hedging relationship. This calculation is
illustrated in the following table:
26
In the table with the overview of the calculations (see paragraph IE33) this reclassification adjustment is the line item Reclassification for
interest rate risk in the reconciliation of the cash flow hedge reserve (eg at the end of Period 2 a reclassification of a gain of LC82,656 from the
cash flow hedge reserve to profit or losssee paragraph IE35 for how that amount is calculated).
27
In the table with the overview of the calculations (see paragraph IE33) this amortisation results in a periodic reclassification adjustment of
LC14,103 that is included in the line item Amortisation of CFHR in the reconciliation of the cash flow hedge reserve.
IFRS Foundation 20
HEDGE ACCOUNTING
The present value of all cash flows expected on the variable rate FX liability and
the cross-currency interest rate swap over the hedged term at the end of
Period 1 is LC-1,242,310.28
(b) At subsequent dates, the present value of the aggregated exposure is
determined in the same way as at the end of Period 1 but for the remainder of
the hedged term. For that purpose, all remaining cash flows expected on the
variable rate FX liability and the cross-currency interest rate swap over the
remainder of the hedged term (ie from the effectiveness measurement date
until the end of Period 4) are updated (as applicable) and then discounted. The
total of those present values represents the present value of the aggregated
exposure. This calculation is illustrated in the following table for the end of
Period 2:
28
In this example no hedge ineffectiveness arises on either hedging relationship because of the assumptions made (see paragraph IE33).
Consequently, the absolute values of the variable rate FX liability and the FC denominated leg of the cross-currency interest rate are equal (but
with opposite signs). In situations in which hedge ineffectiveness arises, those absolute values would not be equal so that the remaining net
amount would affect the present value of the aggregated exposure.
21 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
Example 3Present value of the aggregated exposure (at the end of Period 2)
The changes in interest rates and the exchange rate result in a present value of
the aggregated exposure at the end of Period 2 of LC-1,159,654.
Consequently, the change in the present value of the aggregated exposure
between the end of Period 1 and the end of Period 2 is a gain of LC82,656.29
IE36 Using the change in present value of the hedged item (ie the aggregated exposure)
and the fair value of the hedging instrument (ie the interest rate swap), the related
reclassifications from the cash flow hedge reserve to profit or loss (reclassification
adjustments) are then determined.
IE37 The following table shows the effect on Entity Cs statement of profit or loss and
other comprehensive income and its statement of financial position (for the sake of
transparency some line items30 are disaggregated on the face of the statements by
29
This is the amount that is included in the table with the overview of the calculations (see paragraph IE33) as the change in present value of the
aggregated exposure at the end of Period 2.
30
The line items used in this example are a possible presentation. Different presentation formats using different line items (including line items
that include the amounts shown here) are also possible (IFRS 7 Financial Instruments: Disclosures sets out disclosure requirements for hedge
accounting that include disclosures about hedge ineffectiveness, the carrying amount of hedging instruments and the cash flow hedge reserve).
IFRS Foundation 22
HEDGE ACCOUNTING
the two hedging relationships, ie for the cash flow hedge of the variable rate FX
liability and the fair value hedge of the aggregated exposure):31
Example 3Overview of effect on statements of financial performance and financial position
[All amounts in LC]
t0 Period 1 Period 2 Period 3 Period 4
Other gains/losses
IRS 0 82,656 (67,367) 27,021
FX gain/loss (liability) (150,000) 370,000 90,000 (140,000)
FX gain/loss (interest) (3,008) 8,220 1,030 (731)
Reclassification for FX risk 153,008 (378,220) (91,030) 140,731
Reclassification for interest rate risk 0 (82,656) 67,367 (27,021)
Total other gains/losses 0 0 (0) (0)
Profit or loss 36,466 30,092 67,087 23,788
IE38 The total interest expense in profit or loss reflects Entity Cs interest expense that
results from its risk management strategy:
31
For Period 4 the values in the table with the overview of the calculations (see paragraph IE33) differ from those in the following table. For
Periods 1 to 3 the dirty values (ie including interest accruals) equal the clean values (ie excluding interest accruals) because the period end is a
settlement date for all legs of the derivatives and the fixed rate FX liability. At the end of Period 4 the table with the overview of the calculations
uses clean values in order to calculate the value changes consistently over time. For the following table the dirty values are presented, ie the
maturity amounts including accrued interest immediately before the instruments are settled (this is for illustrative purposes as otherwise all carrying
amounts other than cash and retained earnings would be nil).
23 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
(a) In Period 1 the risk management strategy results in interest expense reflecting
fixed interest rates in LC after taking into account the effect of the
cross-currency interest rate swap.
(b) For Periods 2 to 4, after taking into account the effect of the interest rate swap
entered into at the end of Period 1, the risk management strategy results in
interest expense that changes with variable interest rates in LC (ie the variable
interest rate prevailing in each period). However, the amount of the total
interest expense is not equal to the amount of the variable rate interest because
of the amortisation of the amount that was in the cash flow hedge reserve for
the first level relationship at the end of Period 1.32
32
See paragraph IE34(b). That amortisation becomes an expense that has an effect like a spread on the variable interest rate.
IFRS Foundation 24
HEDGE ACCOUNTING
Appendix
Amendments to guidance on other IFRSs
The following amendments to guidance on IFRSs are necessary in order to ensure
consistency with IFRS 9 Financial Instruments and the related amendments to other IFRSs.
IG52 An entity recognises and measures all financial assets and financial
liabilities in its opening IFRS statement of financial position in
accordance with IFRS 9, except as specified in paragraphs B2B6
of the IFRS, which address derecognition and hedge accounting.
Recognition
IG53 An entity recognises all financial assets and financial liabilities
(including all derivatives) that qualify for recognition in accordance
with IFRS 9 and have not yet qualified for derecognition in
accordance with IFRS 9, except non-derivative financial assets and
non-derivative financial liabilities derecognised in accordance with
previous GAAP before 1 January 2004, to which the entity does not
choose to apply paragraph B3 (see paragraphs B2 and B3 of the
IFRS). For example, an entity that does not apply paragraph B3
does not recognise assets transferred in a securitisation, transfer or
other derecognition transaction that occurred before 1 January
2004 if those transactions qualified for derecognition in accordance
with previous GAAP. However, if the entity uses the same
securitisation arrangement or other derecognition arrangement for
further transfers after 1 January 2004, those further transfers
qualify for derecognition only if they meet the derecognition criteria
of IFRS 9.
IG54 An entity does not recognise financial assets and financial liabilities
that do not qualify for recognition in accordance with IFRS 9, or
have already qualified for derecognition in accordance with IFRS 9.
Embedded derivatives
IG55 When IFRS 9 requires an entity to separate an embedded
derivative from a host contract, the initial carrying amounts of the
components at the date when the instrument first satisfies the
recognition criteria in IFRS 9 reflect circumstances at that date
(IFRS 9 paragraph 4.3.3). If the entity cannot determine the initial
carrying amounts of the embedded derivative and host contract
reliably, it measures the entire combined contract as at fair value
through profit or loss (IFRS 9 paragraph 4.3.6).
25 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
Measurement
IG56 In preparing its opening IFRS statement of financial position, an
entity applies the criteria in IFRS 9 to identify on the basis of the
facts and circumstances that exist at the date of transition to IFRSs
those financial assets and financial liabilities that are measured at
fair value and those that are measured at amortised cost. The
resulting classifications are applied retrospectively.
IG57 first satisfied the recognition criteria in IFRS 9. However,
IG58 An entitys estimates of impairments of financial assets measured
at amortised cost at the date of transition to IFRSs are consistent
with estimates made for the same date
Transition adjustments
IG58A An entity shall treat an adjustment to the carrying amount of a
financial asset or financial liability as a transition adjustment to be
recognised in the opening balance of retained earnings at the date
of transition to IFRSs only to the extent that it results from adopting
IAS 39 and IFRS 9. Because all derivatives, other than those that
are financial guarantee contracts, a commitment to provide a loan
at a below-market interest rate or are designated and effective
hedging instruments, are measured at fair value through profit or
loss, the differences between the previous carrying amount (which
may have been zero) and the fair value of the derivatives are
recognised as an adjustment of the balance of retained earnings at
the beginning of the financial year in which IAS 39 and IFRS 9 are
initially applied (other than for a derivative that is a financial
guarantee contract, a commitment to provide a loan at a below-
market interest rate or a designated and effective hedging
instrument).
IG59 An entity may, in accordance with its previous GAAP, have
measured investments at fair value and recognised the revaluation
gain outside profit or loss. If an investment is classified as at fair
value through profit or loss, the pre-IFRS 9 revaluation gain that
had been recognised outside profit or loss is reclassified into
retained earnings on initial application of IFRS 9. If, on initial
application of IFRS 9, an investment in an equity instrument is
classified as at fair value through other comprehensive income,
then the pre-IFRS 9 revaluation gain is recognised in a separate
component of equity. Subsequently, the entity recognises gains and
losses on the financial asset in other comprehensive income
(except dividends, which are recognised in profit or loss) and
accumulates the cumulative gains and losses in that separate
component of equity. On subsequent derecognition, the entity may
transfer that separate component of equity within equity.
Hedge accounting
IG60 Paragraphs B4B6 of the IFRS deal with hedge accounting. The
designation and documentation of a hedge relationship must be
completed on or before the date of transition to IFRSs if the hedge
IFRS Foundation 26
HEDGE ACCOUNTING
Note
Effect of
Previous transition
GAAP to IFRSs IFRSs
CU CU CU
27 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
6 Employee benefits 0 66 66
IFRS Foundation 28
HEDGE ACCOUNTING
CU
Because the tax base at 1 January 20X4 of the items reclassified from intangible assets to goodwill
(note 2) equalled their carrying amount at that date, the reclassification did not affect deferred tax
liabilities.
Effect of
Previous transition
GAAP to IFRSs IFRSs
Note CU CU CU
29 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
Other comprehensive
income 0 (69) (69)
Total comprehensive
income 264 (242) 22
* In November 2009 and October 2010 the IASB amended some of the
requirements of IAS 39 and relocated them to IFRS 9 Financial Instruments.
IFRS 9 applies to all items within the scope of IAS 39.
1.7 Not an insurance contract at inception, if the insurer can reprice the
mortality risk without constraints. Within the scope of IFRS 9
Financial Instruments unless the contract contains a discretionary
participation feature.
Will become an insurance contract when the annuity rate is fixed
(unless the contingent amount is insignificant in all scenarios that
have commercial substance).
IFRS Foundation 30
HEDGE ACCOUNTING
31 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
(b)
IFRS Foundation 32
HEDGE ACCOUNTING
33 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
...
The incremental cash flows have a present value, in year 1, of CU35
(assuming a discount rate of 10 per cent is appropriate). Applying
paragraphs 1012 of the IFRS, the cedant unbundles the contract and
IFRS Foundation 34
HEDGE ACCOUNTING
35 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
CU* CU
CU CU CU
IFRS Foundation 36
HEDGE ACCOUNTING
CU CU
(a) An amount of CU400 relating to these assets has been recognised in other comprehensive income and accumulated in
equity.
Description 31 Dec CU CU CU
20X2 million million million
Trading derivatives 39 17 20 2
Equity investments 75 30 40 5
37 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
CU CU CU CU
million million million million
Opening balance 6 5 3 14
Issues
Settlements (1) (1)
Transfers out of Level
3 (2) (2)
Closing balance 5 2 5 12
Total gains or losses for the
period included in profit or loss
for assets held at the end of the
reporting period (1) (1) (2)
Gains or losses included in profit or loss for the period (above) are presented in
trading income and in other income as follows:
Trading
Income
Total gains or losses included in
profit or loss for the period (4)
IGA14 Paragraph IG14 and the illustrative disclosure following paragraph IG14 are
amended to read as follows:
IG14 The fair value at initial recognition of financial instruments that are
not traded in active markets is determined in accordance with
paragraph B5.4.8 of IFRS 9. However, when, after initial
recognition, an entity will use a valuation technique that
incorporates data not obtained from observable markets, there may
be a difference between the transaction price at initial recognition
and the amount determined at initial recognition using that valuation
technique. In these circumstances, the difference will be recognised
in profit or loss in subsequent periods in accordance with IFRS 9
and the entitys accounting policy. Such recognition reflects
changes in factors (including time) that market participants would
consider in setting a price (see paragraph B5.4.9 of IFRS 9).
IFRS Foundation 38
HEDGE ACCOUNTING
Accounting policies
The entity uses the following valuation technique to determine the fair value of financial
instruments that are not traded in an active market: [description of technique, not included in
this example]. Differences may arise between the fair value at initial recognition (which, in
accordance with IFRS 9, is generally the transaction price) and the amount determined at
initial recognition using the valuation technique. Any such differences are [description of the
entitys accounting policy].
39 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
At 31 December 20X2, if interest rates at that date had been 10 basis points lower with all
other variables held constant, post-tax profit for the year would have been CU1.7 million
(20X1CU2.4 million) higher, arising mainly as a result of lower interest expense on
variable borrowings. If interest rates had been 10 basis points higher, with all other variables
held constant, post-tax profit would have been CU1.5 million (20X1CU2.1 million) lower,
arising mainly as a result of higher interest expense on variable borrowings. Profit is more
sensitive to interest rate decreases than increases because of borrowings with capped
interest rates. The sensitivity is lower in 20X2 than in 20X1 because of a reduction in
outstanding borrowings that has occurred as the entitys debt has matured (see note X).
[footnote omitted] ...
Commodity price
risk
- Forward sales
contracts xx xx xx Line item XX xx
Fair value hedges
IFRS Foundation 40
HEDGE ACCOUNTING
Commodity price
risk
Commodity X n/a xx xx Line item XX xx Line item XX
- Discontinued
hedge n/a n/a n/a n/a xx Line item XX
(a) The information disclosed in the statement of changes in equity (cash flow hedge reserve) should have the same level of detail as these disclosures.
(b) This disclosure only applies to cash flow hedges of foreign currency risk.
41 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
Notes
20X7 20X6
IFRS Foundation 42
HEDGE ACCOUNTING
IGA18 The second paragraph in footnote (k) to the illustrative financial statements is
amended to read as follows:
(k) The amount included in the translation, investments in equity
instruments and cash flow hedge reserves represents other
comprehensive income for each component, net of tax and non-
controlling interests, eg other comprehensive income related to
investments in equity instruments for 20X6 of 16,000 is 26,667, less
tax 6,667, less non-controlling interests 4,000.
IGA19 The second paragraph in footnote (l) to the illustrative financial statements is
amended to read as follows:
(l) The amount included in the translation, investments in equity
instruments and cash flow hedge reserves represents other
comprehensive income for each component, net of tax and non-
controlling interests, eg other comprehensive income related to the
translation of foreign operations for 20X7 of 3,200 is 5,334, less tax
1,334, less non-controlling interests 800.
IAS 18 Revenue
IGA20 In the illustrative examples, paragraphs 5 and 14 are amended to read as
follows:
5 ...
For a sale and repurchase agreement on an asset other than a
financial asset, the terms of the agreement need to be analysed to
ascertain whether, in substance, the seller has transferred the risks
and rewards of ownership to the buyer and hence revenue is
recognised. When the seller has retained the risks and rewards of
ownership, even though legal title has been transferred, the
transaction is a financing arrangement and does not give rise to
revenue. For a sale and repurchase agreement on a financial
asset, IFRS 9 Financial Instruments applies.
14 Financial service fees
...
(a) Fees that are an integral part of the effective interest rate of
a financial instrument.
...
(i) Origination fees received by the entity relating to the
creation or acquisition of a financial asset other than
one that under IFRS 9 is measured at fair value
through profit or loss.
Such fees may include compensation for activities
such as evaluating the borrowers financial condition,
43 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
IFRS Foundation 44
HEDGE ACCOUNTING
45 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
47 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
IGA43A In the title of, and the answer to, Question G.2, references to IAS 39 are
replaced with IFRS 9.
IFRS Foundation 48
HEDGE ACCOUNTING
Tables of Concordance
This table shows how the contents of IAS 39 and IFRS 9 correspond. In transferring the
material from IAS 39 to IFRS 9 some minor editorial changes have been necessary.
Paragraphs in
Paragraph in IAS 39 Paragraph in IAS 39 Paragraphs in
IFRS 9
(as amended by (as amended by IFRS 9
(October
IFRS 9 in 2009) IFRS 9 in 2009) (October 2010)
2010)
103M 7.2.9
AG84AG93not
55 5.7.1
moved
AG94AG95not
56 5.7.2, 5.7.3
moved
57 5.7.4 AG96deleted
AG97AG133not
5865not moved
moved
71102not moved
49 IFRS Foundation
DRAFT IMPLEMENTATION GUIDANCE
This table shows how the contents of IFRS 9 (issued in November 2009) and IFRS 9
(issued in October 2010) correspond.
Paragraphs in
Paragraphs in
Paragraph in IFRS 9 IFRS 9 Paragraph in IFRS 9
IFRS 9
(November 2009) (October (November 2009)
(October 2010)
2010)
8.2.7 7.2.7
Replaced by
3.1.2
amended 3.1.2
8.2.8 7.2.8
Replaced by
4.1 4.1.1 8.2.9
7.2.9
B4.3 B4.1.3
Replaced by
4.8
4.3.34.3.7
B4.4 B4.1.4
Replaced by
5.4.1 B4.13 B4.1.13
5.7.1
Replaced by
5.4.3 B4.15 B4.1.15
5.7.3
Replaced by
8.1.1 B4.18 B4.1.18
7.1.1
IFRS Foundation 50
HEDGE ACCOUNTING
B5.6 B5.4.15
51 IFRS Foundation