IFRS 9 6.4 requires an entity to meet all of 4 criteria for the combination of the hedging instrument and the hedged item or transaction (the ‘hedging relationship’) and evidence the positive qualification for these criteria in formal documentation (authorised by an appropriate level of management of an enity) to qualify for hedge accounting.
Eligibility of hedged items or transactions
Eligibility of hedged risk(s)
Eligibility of hedging instruments
Evidenced in formal documentation
Formal designation and documentation at hedge inception
Concurrent designation and documentation of a … Read more