CERTYNEX IFRS ACADEMY

Dorade SA hedges its dollar exposure economically through a forward contract, but does not apply hedge accounting to this relationship (case facts). Are the IFRS 7 disclosures specific to hedge accounting required for this exposure?

Yes: any economically hedged exposure must be covered by these disclosures, whether or not hedge accounting is applied, including where the entity does not document a hedging relationship.

Yes: the forward contract is a derivative, and any derivative held for hedging purposes triggers these specific hedging disclosures.

No: the entity is exempt from any disclosure about the forward contract, including the general disclosures on instruments and on risks.

No: these disclosures apply to risk exposures that the entity hedges and for which it applies hedge accounting, which is not the case here.