In an FX forward, hedge accounting is accounting for the premiums and discounts separately from the intrinsic value.

Name: In an FX forward, hedge accounting is accounting for the premiums and discounts separately from the intrinsic value.
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In hedge accounting for an FX forward, the entire change in fair value (including both the intrinsic value and the time value components such as premiums or discounts) of the hedging instrument is used to assess its effectiveness and is not accounted for separately.

In an FX Forward, Hedge Accounting Is Accounting for the Premiums