Definitions
8
The terms defined in AASB 13, AASB 9 and AASB 132 are used in this Standard with the meanings specified in Appendix A of AASB 13, Appendix A of AASB 9 and paragraph 11 of AASB 132. AASB 13, AASB 9 and AASB 132 define the following terms:
• amortised cost of a financial asset or financial liability
• derecognition
• derivative
• effective interest method
• effective interest rate
• equity instrument
• fair value
• financial asset
• financial instrument
• financial liability
and provide guidance on applying those definitions.
9
The following terms are used in this Standard with the meanings specified:
Definitions relating to hedge accounting
9[1]
A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates.
9[2]
A forecast transaction is an uncommitted but anticipated future transaction.
9[3]
A hedging instrument is a designated derivative or (for a hedge of the risk of changes in foreign currency exchange rates only) a designated non-derivative financial asset or non-derivative financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item (paragraphs 72–77 and Appendix A paragraphs AG94–AG97 elaborate on the definition of a hedging instrument).
9[4]
A hedged item is an asset, liability, firm commitment, highly probable forecast transaction or net investment in a foreign operation that (a) exposes the entity to risk of changes in fair value or future cash flows and (b) is designated as being hedged (paragraphs 78–84 and Appendix A paragraphs AG98–AG101 elaborate on the definition of hedged items).
9[5]
Hedge effectiveness is the degree to which changes in the fair value or cash flows of the hedged item that are attributable to a hedged risk are offset by changes in the fair value or cash flows of the hedging instrument (see Appendix A paragraphs AG105–AG113A).
10–70
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