A hedge is defined by IAS 39 as an action taken,whether by entering into a foreign currency contract or otherwise,with the objective of maximising the possible positive effects of movements in exchange rates.

Question

Quizplus · Accepted Answer

A hedge is defined by IAS 39 as an action taken to offset or reduce the risk of adverse movements in exchange rates or other financial risks, rather than to maximize the possible positive effects of such movements.

A Hedge Is Defined by IAS 39 as an Action