This article relies largely or entirely on a single source. (April 2007) |
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 edit
References edit
- ^ "IAS 39 Financial Instruments: Recognition and Measurement" (PDF). International Accounts Standards Board.
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