Chpt 4 Hedges

Question 1

Fair value hedges

Answer 1

All gains/losses on both the hedged item and instrument recognise immediately in the statement of profit and loss

Question 2

Fair value hedge

Loss on value of item or instrument

Answer 2

Debit the profit and loss

Question 3

Fair value of hedge

Gain on the value of the item or instrument

Answer 3

Credit the profit and loss

Question 4

Cash flow hedges

Answer 4

Value of gain or loss on cash flow hedge recognise in statement of other comprehensive income and transferred to statement of profit or loss when cash flow recognised

Question 5

Hedges of net investments in for an operation

Answer 5

Translated at closing right in a statement of other comprehensive income