DEFINITION
Hedge accounting

"Hedge accounting": A system of incorporating a financial hedge into the accounting system. Under International Financial Reporting Standards (IFRS) a hedge and the underlying transaction being hedged are accounted for separately. Hedge accounting ensures that both items receive similar accounting treatment. There are qualifications that must be satisfied in order that hedge accounting may be used, for example that the hedge can be shown to be effective.
Loading conversations.
Similar or Related Terms
Statistics
390
Characters
67
Words
29.04
Flesch Reading Ease
13.4
Flesch Kincaid Grade