When accounting for a cash flow hedge, IFRS 9 requires that hedge ineffectiveness is:
A) recorded in profit or loss;
B) separately recorded in equity;
C) recorded separately as a financial liability;
D) capitalised as a deferred asset.

Question

Quizplus · Accepted Answer

Hedge ineffectiveness under IFRS 9 is recorded in profit or loss. This reflects the portion of the hedge that did not effectively offset the variability in the cash flows or fair value of the hedged item.

When Accounting for a Cash Flow Hedge, IFRS 9 Requires