Overview of hedging disclosures

Learning objectives

• Explain that the hedge accounting disclosures apply to the risk exposures hedged for which hedge accounting is applied and are presented in a single note or separate section.L3
• Identify the risk exposures for which hedge accounting disclosures are required.L3

Normative references

• IFRS 7 §21AThe hedge accounting disclosures (21B to 24F) apply to the risk exposures that the entity hedges and for which it elects to apply hedge accounting; they provide information about the risk management strategy, how hedging may affect future cash flows and the effect of hedge accounting on the financial statements.
• IFRS 7 §21BThese disclosures are presented in a single note or a separate section of the financial statements; a cross-reference to another statement (management commentary, risk report) is possible if it is available to users on the same terms and at the same time as the financial statements.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• 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?L3