Cash flow hedge
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A cash flow hedge[1] is a hedge of the exposure to the variability of cash flow that:
- is attributable to a particular risk associated with a recognized asset or liability. Such as all or some future interest payments on variable rate debt or a highly probable forecast transaction and
- could affect profit or loss (IAS 39, §86b)
This, essentially, is the accounting definition; for application, see Financial risk management § Corporate finance and Hedge (finance) § Categories of hedgeable risk.
See also
- Cash flow at risk
- Hedge accounting
- Statement of changes in equity
- Mark-to-market accounting
- Hedge relationship (finance)
- Accumulated other comprehensive income (FAS 130)
- IFRS 7
- IFRS 9
- FASB 133
- IAS 39
References
- ^ "IAS 39 Financial Instruments: Recognition and Measurement" (PDF). International Accounts Standards Board.
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