Journal Entries under Fair Value Hedge and Cash Flows Hedge

[@raysulislam435]

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

[@AVCLearning]

Thanks a ton

[@baylorzander4577]

InstaBlaster.

[@ismailmiah1742]

Thank u a lot for such a wonderful presentation.

[@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

[@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

[@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.

[@soumire]

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

[@FranciscoMontes]

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

[@golgo1990]

Thank you, very helpful.

[@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.

[@dinaraquliyeva3895]

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

[@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...

[@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?

[@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.