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Understood, thank you!

Many Thanks this was very clearly laid out and very helpful! I'm assuming if hedge accounting is applied then the only difference to these journals will be around the recording of the intrinsic value of the option in OCI (assuming that only the intrinsic value is designated in the hedging relationsh...

Hi all Happy NY! Can anyone help with at what point is an option recognised in the financial statements? I'm assuming the option premium gets recorded as an expense right away when it is paid but when does an option get recognised? If it is never exercised, does it never exist on the financial state...

It would be an ideal situation if it were just a USD fixed to GBP Fixed CCIRS but in this case we've got the derivatives as mentioned which need to be all designated in a hedging relationship and hence my question.

Hi I was reading through some hedge accounting guidance and came across 2 scenarios : Scenario 1. Aggregated Exposure - where a combination of financial and non financial instrument can be a hedged item and another derivative can be the instrument. i.e. say USD fixed rate debt + USD fixed to GBP flo...

That makes sense, thank you!

IFRS 9.6.5.12 says the cash flow hedge reserve related to a discontinued hedge remains there until the future cash flow occurs. As for the second point, how did the day 1 gain/loss arise? A CCS is usually configured to be a zero-FV contract by adjusting spreads and prepaid premium so it is not favo...

Hi all, I have a CCIRS designated against a debt in a cash flow hedge. The CCIRS was restructured (maturity and interest rate restructured) and as a result the existing hedging relationship was discontinued. Since the debt still exists (and the hedged item cash flows as a result are still highly pro...