It seems pointless to distinguish between different types of hedges,as the accounting treatment is the same for all hedging,that is,all changes in fair values of hedging instruments are recognised in profit or loss.

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Different types of hedges have different accounting treatments such as fair value hedge, cash flow hedge, and net investment hedge. The changes in fair value of hedging instruments are recognised differently in each case. Therefore, it is important to distinguish between different types of hedges for appropriate accounting treatment.

It Seems Pointless to Distinguish Between Different Types of Hedges,as