Forex Hedge Accounting Treatment
OANDA’s FXConsulting
for Corporations
15
Documenting Designated Hedging Criteria
To designate a forex hedge as a fair value hedge, a cash flow hedge, or a net investment hedge, certain
criteria must be met. Consult your accounting professional to ensure that your documentation is
adequate and avoid volatility in the income statement. If a designated hedge is not documented
properly, all changes to the fair value of the forex hedge will be recorded directly on the income
statement for each reporting period, as opposed to being recorded in the equity section under OCI for
cash flow hedges.
Dostları ilə paylaş: 
