Journal Entries under Fair Value Hedge and Cash Flows Hedge

[@chaccopo]

Can you advise on the accounting entries upon termination of cash flow hedge? The swap was previously used to hedge a long term loan which was prepaid and hence have to terminate the swap

[@raysulislam435]

One of the underrated youtube channels...!!! Thank you so much sir for your immense effort...!!

[@AVCLearning]

Thanks a ton

[@baylorzander4577]

InstaBlaster.

[@gmailamuser]

Amazing topic... Great setup of making understand..while last entry was not completed

[@rachaelchari6913]

Very helpful indeed, thank you!.

[@MdWasimAnsari]

Explained smoothly. Kudos. It would have been great if you talk on hedge effectiveness too.

[@MdWasimAnsari]

Nonetheless explained effortlessly. Thanks

[@brundavenkatesh1534]

For the M1 movement in spot rate from 1.15 to 1.1, would it not be 57,500 [ie. (1.15-1.1)*1150000] at which rate the asset needs to be measured at? Pl. clarify.

[@FranciscoMontes]

The examples are related to NDF? I believe that Full-DF would make the wires between banks when mature raised.

[@soumire]

Could you please advise is the cash received from the cash flow hedge need to be shown separately?

[@shreenair900]

What entry shall we pass for the ineffective portion when the derivative and bond actually settles in a fair value hedge. What shall happen to the additional movement in the derivative on settlement.

[@ismailmiah1742]

Thank u a lot for such a wonderful presentation.

[@dinaraquliyeva3895]

should we not keep inventory at NRV in SOFP (if NRV is lower than COST) when either using hedge accounting or not ?

[@anushreegupta9812]

On the CF Hedge Accounting bit, wouldn't you have to recycle the gain on FX Contract from OCI to the carrying amount of inventory as soon as you've made the purchase instead of waiting till the inventory hits P/L ?

[@AVCLearning]

The objective of hedge accounting is to enable matching concept. The impact comes to income statement at the time of sale of inventory

[@MuhammadKashif-ud3wv]

@@AVCLearning What if the hedged items say machine that hit PL via depreciation over number of years. How gain/Loss placed in OCI reclassify to PL?

[@golgo1990]

Thank you, very helpful.

[@viveksingla5431]

I don't see the rate at which we have taken the hedge

[@shmups_hobby]

Forward contract (hedging instrument) appears to have been struck at the same as spot value on t0 (day 1). @AVC LEARNING SOLUTIONS is this correct? It's true that we do not hear about the inception of the forward contract in this example...

[@gaureeru5938]

THANK YOU SIR SO MUCH :)

[@Johnincoom]

Indians are the smartest people on earth, they are not currently leading the world because of colonial injuries, just like we Africans.