Hedge effectiveness
The degree to which changes in the fair value or cash flows of the hedged item are offset by those of the hedging instrument.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
Where this is taught
- Series IV · Chapter 9: Accounting and Taxation of IRDintroduced here
- Series I · Chapter 9: Accounting and Taxation of ETCDintroduced here
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