IFRS 9 Hedge Accounting

Hedge designation, effectiveness testing and documentation built to hold up under audit — so a well-built economic hedge doesn't create a P&L problem of its own.

What it is

A well-structured economic hedge can still cause P&L volatility if the accounting isn't designed correctly at the outset. We build the designation and documentation to prevent that.

Step 1 — Designation

Formal hedge documentation at inception, covering the risk management objective, the hedged item, and the hedging instrument — exactly as IFRS 9 requires.

Step 2 — Effectiveness testing

A prospective and retrospective testing methodology appropriate to your hedge, not a generic spreadsheet template.

Step 3 — Ongoing documentation

Periodic effectiveness assessments, journal entries, and disclosure support maintained throughout the life of the hedge.

Step 4 — Audit support

We work directly with your external auditors at year-end so the hedge accounting isn't a surprise or a scramble.

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If your hedge programme needs accounting that survives audit scrutiny, this is where we start.

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