A Guide to Hedge Accounting for Private Enterprises and Not-for-Profit Organizations
This publication provides an overview of the hedge accounting guidance contained in ASPE Section 3856, Financial Instruments. The publication explains why hedge accounting can only be applied to certain hedging relationships under ASPE. It outlines:
Qualifying relationships and specific criteria that must be met for hedge accounting to be applied.
Requirements for an entity to designate that hedge accounting will be applied at the inception of the hedging relationship.
How to formally document the hedging relationship.
Accounting for a hedge of an anticipated transaction vs a hedge of an interest rate risk.