Hedging Accounting_en

AL-AZHAR UNIVERSITY

FACULTY OF ECONOMIC & ADMINISTRATIVE SCIENCE

ACCOUNTING DEPARTEMENT

Research About

Financial Instruments;

Hedging Accounting

Prepared BY:

Amjad Issa Taha

Omar Jamal AbuShaaban

Shady Emad Al-Dalou

SUPERVISED BY:

Dr. Emad AbuShaaban

May,2011

Table of contents

Part 1 IFRS Hedge Accounting

· Hedge Accounting

· Hedging Instruments

· Hedged Items

· Qualifying Criteria for Hedge Accounting

Part 2 Accounting for qualifying hedges

· Fair value hedges

· Cash flow hedges

· Hedges of a net investment in a foreign operation

· Accounting for the time value of options

Part 3 Hedges of a Group of Items

· Eligibility of a group of items as the hedged item

· Presentation

Part 4 Disclosures

· The risk management strategy

· The amount, timing, and uncertainty of future cash flows

· The effects of hedge accounting on the primary financial statements

Part 5 Salient differences between IAS 39 and IFRS 9

Hedge accounting (general questions)

Advantages of IFRS 9

Part 6 Appendices

· Define term

· Effective date and transition

· Application Guidance

· Illustrative examples

· References