For a designated cash flow hedge,IAS 39 Financial Instruments:
Recognition and Measurement requires the gain or loss on the hedging instrument to be transferred initially to equity and subsequently to profit or loss to offset the gains or losses on the hedged item.

Question

For a designated cash flow hedge,IAS 39 Financial Instruments:
 Recognition and Measurement requires the gain or loss on the hedging instrument to be transferred initially to equity and subsequently to profit or loss to offset the gains or losses on the hedged item.

Quizplus · Accepted Answer

According to IAS 39, the gain or loss on the hedging instrument for a designated cash flow hedge should be initially transferred to equity and subsequently to profit or loss to offset the gains or losses on the hedged item.

For a Designated Cash Flow Hedge,IAS 39 Financial Instruments