Discontinuance of hedge accounting
As per the new requirements, hedge accounting cannot be voluntarily discontinued. Hedge accounting can be discontinued only if the hedge effectiveness requirements are not met or that the hedging instrument is liquidated. Even when the hedge effectiveness requirements are not met, the entity should adjust the hedge ratio through the process of rebalancing and continue with hedge accounting so long as the hedging relationship continues to meet the risk management objectives of the enterprise. When hedge accounting is discontinued, the hedged item would once again be valued at amortised cost. The carrying value of the hedged item would have been reduced or increased, as the case may be, by the value of the hedging instrument. Such carrying value would be amortised based on applying the effective interest rate method such that at maturity the carrying value would be equal to the maturity value of the financial asset or liability.
Hedges of a net investment in a foreign operation
Treatment of time value /forward points in derivatives
Accounting for the time value of options
Hedge effectiveness requirements
Disclosures in respect of hedge accounting
Hedging fixed rate debt instrument with IRS
Relationship between components – cash flow hedge
Accounting for net investment hedge – Only functional currency
Illustration of a net investment hedge by a parent entity
Rebalancing by changing the hedge ratio
Are RBI circulars relevant for ECL computation as per Ind AS 109?
Hedging a net position – cash flow hedge
Equity derivatives and interest rate derivatives
Steps involved in fair value hedge accounting
Accounting for fair value hedge
Hedging instruments and hedged items
Qualifying criteria for hedge accounting
What is meant by Hedging & Hedge Accounting
Equity derivatives and interest rate derivatives