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03-03-2017, 05:12 PM
Hi Tanjm
Like your question and asked around too. None reply. I am Not better as well. Thought about it and think it is not about accounting. Clement comment is pretty much what I understand from hedge accounting.nothing much to add.
The only thing will be the intention of going into a hedge and what consider as fully hedge and presentation in accounting.
If the intention is to hedge 3 yrs out of 5 yrs and it is fully hedged within that 3 yrs. I reckon it will be accounted as fully hedge in the financials.
If the instruments used need to re hedge yearly, it will still considered as fully hedge.
As for disclosure, the requirement to disclosures is there but simple one. Pretty much play to the hand of the management(knowingly or unknowingly) and auditor to catch. Auditor generally go with the management
Like your question and asked around too. None reply. I am Not better as well. Thought about it and think it is not about accounting. Clement comment is pretty much what I understand from hedge accounting.nothing much to add.
The only thing will be the intention of going into a hedge and what consider as fully hedge and presentation in accounting.
If the intention is to hedge 3 yrs out of 5 yrs and it is fully hedged within that 3 yrs. I reckon it will be accounted as fully hedge in the financials.
If the instruments used need to re hedge yearly, it will still considered as fully hedge.
As for disclosure, the requirement to disclosures is there but simple one. Pretty much play to the hand of the management(knowingly or unknowingly) and auditor to catch. Auditor generally go with the management