Hedging instruments must always be classified as Fair Value through Profit or Loss (FVTPL).

Question

Quizplus · Accepted Answer

While hedging instruments are often measured at fair value for accounting purposes, they may be classified as either FVTPL or cash flow hedge depending on the designated hedging relationship and the effectiveness of the hedge. Therefore, it is not always the case that hedging instruments must be classified as FVTPL.

Hedging Instruments Must Always Be Classified as Fair Value Through