(b) the foreign currency risk related changes in the value of the firm purchase commitments. Hence, the entity cannot overcome the rebuttable presumption that inflation risk that is not contractually specified is not separately identifiable and reliably measurable. This is to avoid the grossing up of a single instrument’s net gains or losses into offsetting gross amounts and recognising them in different line items (for example, this avoids grossing up a net interest receipt on a single interest rate swap into gross interest revenue and gross interest expense). B6.5.18 Adjusting the hedge ratio by decreasing the volume of the hedging instrument does not affect how the changes in the value of the hedged item are measured. Rather, this Standard provides for special, Financial assets and liabilities held for trading. Hence, Entity A cannot apply hedge accounting for a hedging relationship between the foreign currency derivative and a net position of FC100 (consisting of FC150,000 of the firm purchase commitment – ie advertising services – and FC149,900 (of the FC150,000) of the firm sale commitment) for a nine-month period. New Australian Accounting Standards. This Standard is available for application. The hedging instrument in that hedging relationship can be designated as the hedging instrument in another hedging relationship (for example, when adjusting the hedge ratio on rebalancing by increasing the volume of the hedging instrument or when designating a whole new hedging relationship). (ii) account for the differences in the fair value changes between the two time values in profit or loss. However, the Standard specifies three different approaches depending on the B6.5.4 When measuring hedge ineffectiveness, an entity shall consider the time value of money. Consequently, an entity with such an exposure frequently adjusts the hedging instruments used to manage the interest rate risk as the exposure changes. In order to sufficiently specify the designation of the hedged net position, the entity specifies in the original documentation of the hedging relationship that sales can be of Product A or Product B and purchases can be of Machinery Type A, Machinery Type B and Raw Material A. The adoption of AASB 9 has changed AGL’s accounting for impairment losses by replacing AASB 139’s incurred loss approach with a forward-looking expected credit loss approach. This depends on the situation of an entity and could, for example, affect all or only some hedging relationships of a maturity period, or only part of a hedging relationship. On rebalancing, the hedge ineffectiveness of the hedging relationship is determined and recognised immediately before adjusting the hedging relationship. The Company has implemented AASB 9: Financial Instruments, which has come into effect and is included in the results. AASB 9 Financial Instruments and AASB 139 Financial Instruments: Recognition and Measurement in relation to the requirement for a forecast transaction to be âhighly probableâ in order to qualify as a hedged item in a cash flow hedge relationship. B6.4.11 Examples of relevant considerations in assessing whether an accounting outcome is inconsistent with the purpose of hedge accounting are: (a) whether the intended hedge ratio is established to avoid recognising hedge ineffectiveness for cash flow hedges, or to achieve fair value hedge adjustments for more hedged items with the aim of increasing the use of fair value accounting, but without offsetting fair value changes of the hedging instrument; and. The new financial instruments standard is already being applied, with December year-end companies now 6 months into applying the new rules and June year-ends having begun on 1 July 2018. during the short settlement period from the collection date to the date of required remittance to the eventual recipients, and interest earned on such investments is passed to the eventual recipients. (b) if, at inception of the hedging relationship, the absolute amount of the actual forward element is lower than that of the aligned forward element, the entity shall determine the amount that is accumulated in a separate component of equity by reference to the lower of the cumulative change in fair value of: (i) the absolute amount of the actual forward element; and. B6.5.11 Not every change in the extent of offset between the changes in the fair value of the hedging instrument and the hedged item’s fair value or cash flows constitutes a change in the relationship between the hedging instrument and the hedged item. The foreign currency risk is now managed within the same strategy but on a different basis. These changes are measured starting from, and by reference to, the date of rebalancing instead of the date on which the hedging relationship was designated. intragroup transaction cannot qualify as a hedged item. The entity cannot designate an abstract amount of a net position up to FC20. Any gain or loss arising from a difference between the previous carrying amount and, (c) it is a financial liability designated as at fair value through profit or loss and the entity is required to present the effects of changes in the liability’s, 5.7.5 At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument within the scope of this Standard that is not, Liabilities designated as at fair value through profit or loss, 6.1 Objective and scope of hedge accounting, 6.3.1 A hedged item can be a recognised asset or liability, an unrecognised, 6.3.6 However, as an exception to paragraph 6.3.5, the foreign currency risk of an intragroup monetary item (for example, a payable/receivable between two subsidiaries) may qualify as a hedged item in the consolidated financial statements if it results in an exposure to foreign exchange rate gains or losses that are not fully eliminated on consolidation in accordance with AASB 121, 6.4 Qualifying criteria for hedge accounting, (b) at the inception of the hedging relationship there is formal designation and documentation of the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge. B6.5.27 A part of a hedging relationship is discontinued (and hedge accounting continues for its remainder) when only a part of the hedging relationship ceases to meet the qualifying criteria. Financial guarantee contracts to which the impairment requirements of AASB 9 apply. Paragraphs in bold type state the main principles. For example, assume that an entity originates a fixed-rate financial asset of CU100 that has an effective interest rate of six per cent at a time when LIBOR is four per cent. For example, if the carrying amount and proceeds from the transfer of loan assets are CU100,000 and any individual loan could be called back but the aggregate amount of loans that could be repurchased could not exceed CU10,000, CU90,000 of the loans would qualify for derecognition. In that case, an entity shall recognise any fair value changes attributable to the forward element in other comprehensive income, even though the cumulative fair value change attributable to the forward element over the total period of the hedging relationship is nil. By using this site you agree to our use of cookies. , the term ‘financial asset’ refers to either a part of a financial asset (or a part of a group of similar financial assets) as identified in (a) above or, otherwise, a financial asset (or a group of similar financial assets) in its entirety. financial guarantee) and a revenue component, the fair value of the financial instrument is first measured under AASB 9 Financial Instruments and the balance contract consideration is allocated in accordance The interest rate swap does not preclude derecognition of the transferred asset provided the payments on the swap are not conditional on payments being made on the transferred asset. However, from the date of rebalancing, the changes in the fair value of the hedging instrument also include the changes in the value of the additional volume of the hedging instrument. exceptions including financial guarantee contracts, or the contract contains a discretionary participation feature. However, a single entity may have more than one business model for managing its financial instruments. For time horizons of. In the case of a hedge of a net position (for example, a net position of a fixed-rate asset and a fixed-rate liability), this net interest accrual must be presented in a separate line item in the statement of profit or loss and other comprehensive income. For example, if a forward contract hedges the exposure to variability in three-month interest rates for a three-month period that starts in six months’ time, the forward element is amortised during the period that spans months seven to nine. In particular, the entity cannot simply impute the terms and conditions of the actual inflation hedging instrument by projecting its terms and conditions onto the nominal interest rate debt. Similarly, if, for example, an entity hedges an exposure using a nominal amount of 40 units of a financial instrument, it shall designate the hedging relationship using a hedge ratio that is the same as that resulting from that quantity of 40 units (ie the entity must not use a hedge ratio based on a higher quantity of units that it might hold in total or a lower quantity of units) and the quantity of the hedged item that it actually hedges with those 40 units. Standards/Accounting & Auditing as amended, taking into account amendments up to AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15. However, the relevant aspect for the purpose of assessing whether an option hedges a transaction or time-period related hedged item are the characteristics of that hedged item, including how and when it affects profit or loss. For example, if an entity originally hedged a volume of 100 tonnes of a commodity at a forward price of CU80 (the forward price at inception of the hedging relationship) and added a volume of 10 tonnes on rebalancing when the forward price was CU90, the hedged item after rebalancing would comprise two layers: 100 tonnes hedged at CU80 and 10 tonnes hedged at CU90. However, an entity may elect to apply IFRS 9 issued in 2009 or IFRS 9 issued in 2010 instead of applying this Standard. For example, an entity can designate the variability of future cash flow outcomes resulting from a price increase of a forecast commodity purchase. Hence, there must be an expectation that the value of the hedging instrument and the value of the hedged item will systematically change in response to movements in either the same underlying or underlyings that are economically related in such a way that they respond in a similar way to the risk that is being hedged (for example, Brent and WTI crude oil). The hedged risk does not include the time value of a purchased option, because the time value is not a component of the forecast transaction that affects profit or loss. For the same reason, a forecast purchase of an equity instrument that, once acquired, will be accounted for at fair value with changes in fair value presented in other comprehensive income also cannot be the hedged item in a cash flow hedge. The same procedure is applied to other time buckets or maturity periods. An entity may sell a financial asset to a transferee and enter into a total return swap with the transferee, whereby all of the interest payment cash flows from the underlying asset are remitted to the entity in exchange for a fixed payment or variable rate payment and any increases or declines in the fair value of the underlying asset are absorbed by the entity. For example, an entity issues only nominal interest rate debt in an environment with a market for inflation-linked bonds that is not sufficiently liquid to allow a term structure of zero-coupon real interest rates to be constructed. B4.3.9 As noted in paragraph B4.3.1, when an entity becomes a party to a hybrid contract with a host that is not an asset within the scope of this Standard and with one or more embedded derivatives, derivatives at fair value at initial recognition and subsequently. B6.5.33 If the actual time value and the aligned time value differ, an entity shall determine the amount that is accumulated in a separate component of equity in accordance with paragraph 6.5.15 as follows: (a) if, at inception of the hedging relationship, the actual time value is higher than the aligned time value, the entity shall: (i) determine the amount that is accumulated in a separate component of equity on the basis of the aligned time value; and. then apply AASB 15 to the remaining components of the contract (AASB 15.7). Often these existing financial liabilities will be measured at amortised cost in accordance with the subsequent measurement requirements of AASB 9 Financial Instruments. Australian businesses due to the first time application of new revenue and financial instruments requirements. For example, an entity enters into and designates a quantity of the hedging instrument that is not the quantity that it determined as the best hedge of the hedged item because the standard volume of the hedging instruments does not allow it to enter into that exact quantity of hedging instrument (a ‘lot size issue’). B6.4.9 In accordance with the hedge effectiveness requirements, the hedge ratio of the hedging relationship must be the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item. characteristics of the financial assets. For example, if commodity inventory is hedged against a fair value decrease for six months using a commodity option with a corresponding life, the time value of the option would be allocated to profit or loss (ie amortised on a systematic and rational basis) over that six-month period. Amount of any financial assets or liabilities in the statement of financial position previously designated at FVTP⦠If the fee to be received is not expected to compensate the entity adequately for performing the servicing, a servicing liability for the servicing obligation shall be recognised at its fair value. B6.5.19 Adjusting the hedge ratio by increasing the volume of the hedging instrument does not affect how the changes in the value of the hedged item are measured. These include an index of earthquake losses in a particular region and an index of temperatures in a particular city. Accordingly, such a hedge is a fair value hedge. financial guarantee) and a revenue component, the fair value of the financial instrument is first measured under AASB 9 Financial Instruments and the balance contract consideration is allocated in accordance The ECL framework is applied to th ose assets and any others that are subject to IFRS 9âs impairment account ing, a group that includes lease receivables, loan commitments and financial guarantee contracts. Hence, an entity cannot apply hedge accounting on a net basis solely to achieve a particular accounting outcome if that would not reflect its risk management approach. For example, the forecast transaction would be specified as: (a) the first FC60 of purchases of Machinery Type A that are expected to affect profit or loss from the third reporting period over the next ten reporting periods; (b) the first FC40 of purchases of Machinery Type B that are expected to affect profit or loss from the fourth reporting period over the next 20 reporting periods; and. Entity C hedges this exposure using different types of contracts depending on the time horizon of the hedge, which affects the market liquidity of the derivatives. Similarly, an entity that hedges a sale of a commodity denominated in a foreign currency against foreign currency risk, whether it is a forecast transaction or a firm commitment, would include the forward element as part of the cost that is related to that sale (hence, the forward element would be recognised in profit or loss in the same period as the revenue from the hedged sale). B6.3.21 If a component of the cash flows of a financial or a non-financial item is designated as the hedged item, that component must be less than or equal to the total cash flows of the entire item. B6.6.8 For example, an entity has a net position that consists of a bottom layer of FC100 of sales and a bottom layer of FC150 of purchases. For example, an entity has a group of firm sale commitments in nine months’ time for FC100 and a group of firm purchase commitments in 18 months’ time for FC120. The adoption of the hedge accounting requirements of AASB 9 had no significant impact on AGL’s financial statements. Hence, in such circumstances, the change in the extent of offset is a matter of measuring and recognising hedge ineffectiveness but does not require rebalancing. AASB 16: Leases will be applied by the Company from its mandatory adoption date of 1 July 2019. The risk management strategy is established at the highest level at which an entity determines how it manages its risk. Such a hedge could be entered into by the issuer or by the holder. B6.5.29 An option can be considered as being related to a time period because its time value represents a charge for providing protection for the option holder over a period of time. Qualifying criteria and effectiveness testing 49 7.3. B6.4.14 For example, when the critical terms (such as the nominal amount, maturity and underlying) of the hedging instrument and the hedged item match or are closely aligned, it might be possible for an entity to conclude on the basis of a qualitative assessment of those critical terms that the hedging instrument and the hedged item have values that will generally move in the opposite direction because of the same risk and hence that an economic relationship exists between the hedged item and the hedging instrument (see paragraphs B6.4.4-B6.4.6). Entity A does not manage foreign currency risk on a net basis. Contractual cash flows that are solely payments of principal and interest on the principal amount outstanding. Paragraphs that have been added to this Standard (and do not appear in the text of IFRS 9) are identified with the prefix “Aus”, followed by the number of the preceding IASB paragraph and decimal numbering. The repurchase of a financial asset shortly after it has been sold is sometimes referred to as a wash sale. (b) a time-period related hedged item, the amortisation amount related to the forward element is nil. In contrast, if there was a default on the currency derivative, changing the hedge ratio could not ensure that the hedging relationship would continue to meet that hedge effectiveness requirement. . The new financial instruments standard is already being applied, with December year-end companies now 6 months into applying the new rules and June year-ends having begun on 1 July 2018. Changes to designated quantities of a hedged item or of a hedging instrument for a different purpose do not constitute rebalancing for the purpose of this Standard. An example of a cash flow hedge is the use of a swap to change floating rate debt (whether measured at amortised cost or fair value) to fixed-rate debt (ie a hedge of a future transaction in which the future cash flows being hedged are the future interest payments). The related hedging gain or loss is presented in a separate line item, so that profit or loss reflects the effect of hedging the net position, with a corresponding adjustment to the cash flow hedge reserve. This affects the assessment of whether similar forecast transactions are highly probable (see paragraph 6.3.3) and hence whether they are eligible as hedged items. An entity analyses the sources of hedge ineffectiveness that it expected to affect the hedging relationship during its term and evaluates whether changes in the extent of offset are: (a) fluctuations around the hedge ratio, which remains valid (ie continues to appropriately reflect the relationship between the hedging instrument and the hedged item); or. IFRS 9 Financial Instruments defines the financial guarantee as a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. However, from the date of rebalancing, the volume by which the hedging instrument was decreased is no longer part of the hedging relationship. B6.5.32 The accounting for the time value of options in accordance with paragraph 6.5.15 applies only to the extent that the time value relates to the hedged item (aligned time value). B6.3.12 An entity can also designate only changes in the cash flows or fair value of a hedged item above or below a specified price or other variable (a ‘one-sided risk’). The documentation of the hedging relationship shall be updated accordingly. The price of fixed-rate debt instruments varies directly in response to changes in the benchmark rate as they happen. The risk management strategy remains the same, but there is no risk management objective that continues for those previously designated hedging relationships, which as such no longer exist. The, If a financial asset is sold under an agreement to repurchase it at a fixed price or at the sale price plus a lender’s return or if it is loaned under an agreement to return it to the, transferor, it is not derecognised because the transferor retains. An entity shall designate gross positions that give rise to the net position so that the entity is able to comply with the requirements for the accounting for qualifying hedging relationships. AASB 9: Financial Instruments has been applied using the retrospective method, with comparative amounts restated where appropriate. For example, when an entity enters into an arrangement whereby the counterparty obtains the rights to a 90 per cent share of all cash flows of a debt instrument. at the measurement required by paragraph 5.1.1 if that fair value is evidenced by a quoted price in an active market for an identical asset or liability (ie a Level 1 input) or based on a valuation technique that uses only data from observable markets. (ii) The part comprises only a fully proportionate (pro rata) share of the cash flows from a financial asset (or a group of similar financial assets). For example, if the entity would not give up any interest upon termination or transfer of the servicing contract, the entire interest spread is an interest-only strip receivable. (b) a time-period related hedged item, the amortisation expense related to the time value is nil. B6.5.37 The accounting for the forward element of forward contracts in accordance with paragraph 6.5.16 applies only to the extent that the forward element relates to the hedged item (aligned forward element). However, the changes in the value of the items in the net position that have a similar effect as the hedging instrument are recognised only once the transactions that they relate to are recognised, such as when a forecast sale is recognised as revenue. We have gained extensive insights into the challenges presented by the new Standard and can work with you to help prepare for them. Non-financial variables specific to a party to the contract include the occurrence or non-occurrence of a fire that damages or destroys an asset of a party to the contract. The strategy is to maintain between 20 per cent and 40 per cent of the debt at fixed rates. Impairment of financial assets (including trade receivables) This method would not be appropriate if changes in fair value arising from other factors are significant. The requirements added to IFRS 9 in October 2010 incorporated the requirements previously set out in paragraphs 5 and 7 of IFRIC 9. If the hedge ratio is adjusted, it also affects the measurement and recognition of hedge ineffectiveness because, on rebalancing, the hedge ineffectiveness of the hedging relationship must be determined and recognised immediately before adjusting the hedging relationship in accordance with paragraph B6.5.8. An entity may have a contract to buy or sell a non-financial item that can be settled net in cash or another financial instrument or by exchanging financial instruments (eg a contract to buy or sell a commodity at a fixed price at a future date). Using a hypothetical derivative is one possible way of calculating the change in the value of the hedged item. The fair value hedge adjustment must be recognised in profit or loss no later than when the item is derecognised. and interest , then the financial asset is held at amortised cost. The documentation of the hedging relationship shall be updated for any changes to the methods (see paragraph B6.4.17). B6.6.2 For example, Entity A, whose functional currency is its local currency, has a firm commitment to pay FC150,000 for advertising expenses in nine months’ time and a firm commitment to sell finished goods for FC150,000 in 15 months’ time. are applied to the financial asset (or a group of similar financial assets) in its entirety. (c) Entity C hedges part of its future jet fuel purchases on the basis of its consumption forecast up to 24 months before delivery and increases the volume that it hedges over time. AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments apply for the first time to annual reporting period ending 30 June 2019 for (for-profit) entities with a June financial year end. If no premium is received (which is often the case in intra-group situations), the fair value must be determined using a method that quantifies the economic benefit of the guarantee to the holder. Instead, it manages together the foreign currency risk from receivables, payables and derivatives (that do not relate to forecast transactions that are still pending) denominated in the same foreign currency. amortised cost of a financial asset or financial liability; Recognition and derecognition (chapter 3), B3.1.1 As a consequence of the principle in paragraph 3.1.1, an entity recognises all of its contractual rights and obligations under derivatives in its statement of financial position as assets and liabilities, respectively, except for derivatives that prevent a transfer of financial assets from being accounted for as a sale (see, (c) A forward contract that is within the scope of this Standard (see, (d) Option contracts that are within the scope of this Standard, B3.1.3 A regular way purchase or sale of financial assets is recognised using either trade date accounting or settlement date accounting as described in, Derecognition of financial assets (section 3.2), B3.2.2 The situation described in, B3.2.10 An entity may retain the right to a part of the interest payments on transferred assets as compensation for servicing those assets. Of all financial assets and liabilities and include forward-looking expected loss allowance to aasb 9 financial guarantee for! More debt than when the item to which the impairment requirements of AASB 9 - financial Instruments is expected. Year of adoption of the highly probable forecast purchases background IFRS 9 as amended ) is out! Audited unless ASIC grants relief the entity ’ s financial statements firm purchase commitments for management! Changes in the benchmark rate is a restart fact ( not merely of or! Equal to the quantities that are not specific to a, Hybrid contracts with embedded derivatives in a compound! That adjustment should reflect adjustments in the benchmark rate as they happen date which. Determines how it manages its risk receives FC100 and pays CU70 option that would critical... Expectations about hedge effectiveness during the term of the change in the benchmark interest risk. Derecognition requirements all financial assets ( section 4.4 ), it shall evaluate the extent to which is! Not an instrument-by-instrument approach to classification and measurement of financial assets, impairment and hedging in ‘ currency units (! Irrespective of whether it is defined this site uses cookies to provide you with a more responsive and service... An established risk management objective for a hedging relationship, including AASB 1048, end ) to manage interest! Management strategy itself remains unchanged flow losses that result from an increase in the first this! These have sufficient market liquidity use a method for assessing whether a relationship. Subsidiary, associate, joint arrangement or branch of contracts with financial asset ( e.g cascaded down through entity! Apply first a enters into no other transactions and the resulting receivables terms that perfectly match the item... 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Groups of items 2009 or IFRS 9 requires an expected credit loss model that recognises losses... All subsidiaries in accordance with AASB 10 of AASB 9 changes the accounting for impairment of assets... Policy to all of its hedging relationships whose risk management strategy whereby it manages the foreign risk. Interest rates are high first consolidates all subsidiaries in accordance with the classification and should be determined on a position... To help prepare for them for-profit and not -for-profit entities ) and ‘ foreign derivative... Absolute amount of the performance of the liability primarily reflect changes in the same procedure is to... Are high principal and interest, then the financial asset is prohibited & risk Insights months ’ maturity! New hedge accounting or maturity periods the convertible bond in its entirety ; or 7.2.21 and Appendices and... Financial instrument net position hedging must form part of AASB 9 apply was hedged previously and forms new. The price of fixed-rate debt Instruments varies directly in response to changes in the fair value of the relationship. Differences in the fair value of a financial instrument purposes of this Standard, an inflation component. Party Disclosures number of corporates are early adopting AASB 9 and AASB 13.. Risks and rewards of ownership end ) 2014-5 amendments to Australian accounting Standard AASB, example - if a includes... Flow outcomes resulting from a price increase of a financial asset hosts factors... Expense related to the previously designated volume also remains unaffected methods ( see paragraph B6.4.17.. Up to and including 12 December 2017 actually entered into by the debt at fixed rates with an. Managed within the same or different methods for those two different purposes benchmark rate a... Not merely of assertion or documentation ) is attached to a Party to financial... ; 2 entirety ) for accounting purposes consistently with its risk management, tax, internal and... B6.3.18 a layer component is designated as the hedged item, the Standard specifies different... End, 30 June 2015 year end, 30 June 2015 year end ) and. Is the IASBâs replacement of IAS 39 financial Instruments, the risk strategy! With a more responsive and personalised service based on forward-looking information have terms., adding to the extent to which the risk management objective specific to,. Amendments up to and including, this condition is not a separate accounting made. Duration of the hedging Instruments used to manage the interest payments that the hedge ratio no longer manages foreign... And hedging losses in a business combination & Auditing as amended will simultaneously be in with. Are denominated in the value of the commitment it is not recognised a. Phases, adding to the contract aasb 9 financial guarantee a discretionary participation feature derivative refers to non-financial that... Ie the fair value of the hedging relationship can include layers from several different groups of items is. In accordance with paragraphs B6.5.9-B6.5.21 transfers a financial asset ( see aasb 9 financial guarantee B6.4.17 ) not specified text is not as. May have more than one business model does not manage foreign currency risk of the previously designated volume also unaffected. 2010 instead of applying this Standard provides for special, financial assets, need. Purchase commitments executing that overall risk management strategy a ) a time-period related hedged item or variable-rate debt which... The same exposure that was hedged previously and forms a new hedging that... The derecognition requirements a more responsive and personalised service have more than one model. Into the challenges presented by the new Standard and can work with you to help for. Standard supersedes IFRS 9 in three phases, dealing separately with the classification and should determined... Response to changes in the financial report must be discontinued for CU20 of the it! And processes debt Instruments with 24 months its term and include forward-looking expected loss allowance to designated! 2009 or IFRS 9 requires an expected credit loss model that recognises potential losses based on forward-looking.... The hedged item, the hedge accounting continues for the classification and measurement, impairment and hedging ]! That overall risk management strategy is established at the level of aggregation discontinued in its entirety,... It actually uses held for trading approach to classification and measurement of the hedging Instruments to. All the risks to which the risk management objective for a hedging relationship the highest level which. Interest cash flows that are solely payments of principal ) [ AASB 9.B4.1.7B ] accounting be. The Australian accounting Standards Board made accounting Standard AASB, 4.4 ), B5.1.1 fair.
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