For a designated cash flow hedge,AASB 139 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,AASB 139 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

This is a correct statement about the requirements of AASB 139 for a designated cash flow hedge. The gain or loss on the hedging instrument is initially transferred to equity and later on to profit or loss to offset any gains or losses on the hedged item.

For a Designated Cash Flow Hedge,AASB 139 Financial Instruments