Division 6.5 ACCOUNTING FOR QUALIFYING HEDGING RELATIONSHIPSF1

United Kingdom Repealed

1. 6.5.1Division 6.5.1
2. 6.5.2There are three types of hedging relationships:
3. 6.5.3Division 6.5.3
4. 6.5.4Division 6.5.4
5. 6.5.5Division 6.5.5
6. 6.5.6An entity shall discontinue hedge accounting prospectively only when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after taking into account any rebalancing of the hedging relationship, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. For this purpose, the replacement or rollover of a hedging instrument into another hedging instrument is not an expiration or termination if such a replacement or rollover is part of, and consistent with, the entity's documented risk management objective. Additionally, for this purpose there is not an expiration or termination of the hedging instrument if:
7. 6.5.7An entity shall apply:
8. Fair value hedges
9. Cash flow hedges
10. Hedges of a net investment in a foreign operation
11. Accounting for the time value of options
12. Accounting for the forward element of forward contracts and foreign currency basis spreads of financial instruments