241 paragraphs found in AASB 139
To qualify for hedge accounting, the hedge must relate to a specific identified and designated risk, and not merely to the entity’s general business risks, and must ultimately affect the entity’s profit or loss. A hedge of the risk of obsolescence of a …
Paragraph 74(a) permits an entity to separate the intrinsic value and time value of an option contract and designate as the hedging instrument only the change in the intrinsic value of the option contract. Such a designation may result in a hedging …
If an entity designates a purchased option in its entirety as the hedging instrument of a one-sided risk arising from a forecast transaction, the hedging relationship will not be perfectly effective. This is because the premium paid for the option …
In the case of interest rate risk, hedge effectiveness may be assessed by preparing a maturity schedule for financial assets and financial liabilities that shows the net interest rate exposure for each time period, provided that the net exposure is …
Entity A computes the change in the fair value of the hedged item, taking into account the change in estimated prepayments, as follows. (a) First, it calculates the percentage of the initial estimate of the assets in the time period that was …
Entity A makes the following accounting entries relating to this time period: …
The net result on profit or loss (excluding interest income and interest expense) is to recognise a loss of (CU1,897). This represents ineffectiveness in the hedging relationship that arises from the change in estimated prepayment …
On 1 February 20X1 Entity A sells a proportion of the assets in the various time periods. Entity A calculates that it has sold 8 1 / 3 per cent of the entire portfolio of assets. Because the assets were allocated into time periods by allocating a …