fair value vs. cash flow hedge

[snakeye85]

Where are realized and unrealized gains/losses realized for both types?

 

[Bilal]

Fair Value hedge = in IS
Cash Flow Hedge = in OCI then realized in IS
Subsid Hedge = OCI and remains in OCI

 

[snakeye85]

Bilal Wrote:
——————————————————-
> Fair Value hedge = in IS
>
> Cash Flow Hedge = in OCI then realized in IS
>
> Subsid Hedge = OCI and remains in OCI
If Subsid Hedge is classficiation above is corrent, SCHWESER QBANK SUCKSSSS!!!

 

[jpsi1]

realized - income stmnt
unrealized - income stmnt for fair value hedge and equity for cash flow hedge
ineffective portion of hedge recognized in income stmnt for all three hedges

 

[snakeye85]

snakeye85 Wrote:
——————————————————-
> Bilal Wrote:
> ————————————————–
> —–
> > Fair Value hedge = in IS
> >
> > Cash Flow Hedge = in OCI then realized in IS
> >
> > Subsid Hedge = OCI and remains in OCI
>
>
> If Subsid Hedge is classficiation above is
> corrent, SCHWESER QBANK SUCKSSSS!!!
Schweser QBank is saying changes in value of a put option that is used to hedge against the changes in value of a subsidiary should be classified as a fair value hedge. I need someone to confirm which is correct.

 

[Bilal]

Schweser sucks all in all. I regret i studied from schweser also i kinda made it up by focusing on EOC for most topics except for alternative/fixed income.

 

[freecmorgan]

Review IFRS vs. GAAP treatment. Don’t forget about ineffective portions of CF hedges, those are recognized in earnings immediately.