Cash flow hedge explained

A cash flow hedge^[1] is a hedge of the exposure to the variability of cash flow that:

1. is attributable to a particular risk associated with a recognized asset or liability. Such as all or some future interest payments on variable rate debt or a highly probable forecast transaction and
2. could affect profit or loss (IAS 39, §86b)

This, essentially, is the accounting definition; for application, see and .

See also

• Cash flow at risk
• Hedge accounting
• Statement of changes in equity
• Mark-to-market accounting
  • Hedge relationship (finance) Accumulated other comprehensive income (FAS 130)
• IFRS 7
  • IFRS 9 FASB 133
• IAS 39

Notes and References

1. Web site: IAS 39 Financial Instruments: Recognition and Measurement. International Accounts Standards Board. 2023-08-18. 2011-10-16. https://web.archive.org/web/20111016163958/http://www.iasb.org/NR/rdonlyres/1D9CBD62-F0A8-4401-A90D-483C63800CAA/0/IAS39.pdf. dead.