Document ID: chunk:federal_register_of_legislation:F2021C00192:body:0:p3
Version: federal_register_of_legislation:F2021C00192
Segment Type: other
Provision Reference: 
Character Range: 5965–8680

part of a hedging relationship that qualifies for hedge accounting in accordance with this Standard.
2A–
7 [Deleted]

Definitions
8 The terms defined in AASB 13, AASB 9 and AASB 132 are used in this Standard with the meanings specified in Appendix A of AASB 13, Appendix A of AASB 9 and paragraph 11 of AASB 132. AASB 13, AASB 9 and AASB 132 define the following terms:
• amortised cost of a financial asset or financial liability
• derecognition
• derivative
• effective interest method
• effective interest rate
• equity instrument
• fair value
• financial asset
• financial instrument
• financial liability
and provide guidance on applying those definitions.
9 The following terms are used in this Standard with the meanings specified:

Definitions relating to hedge accounting
 A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates.
 A forecast transaction is an uncommitted but anticipated future transaction.
 A hedging instrument is a designated derivative or (for a hedge of the risk of changes in foreign currency exchange rates only) a designated non-derivative financial asset or non-derivative financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item (paragraphs 72–77 and Appendix A paragraphs AG94–AG97 elaborate on the definition of a hedging instrument).
 A hedged item is an asset, liability, firm commitment, highly probable forecast transaction or net investment in a foreign operation that (a) exposes the entity to risk of changes in fair value or future cash flows and (b) is designated as being hedged (paragraphs 78–84 and Appendix A paragraphs AG98–AG101 elaborate on the definition of hedged items).
 Hedge effectiveness is the degree to which changes in the fair value or cash flows of the hedged item that are attributable to a hedged risk are offset by changes in the fair value or cash flows of the hedging instrument (see Appendix A paragraphs AG105–AG113A).
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70 [Deleted]

Hedging
71 If an entity applies AASB 9 and has not chosen as its accounting policy to continue to apply the hedge accounting requirements of this Standard (see paragraph 7.2.21 of AASB 9), it shall apply the hedge accounting requirements in Chapter 6 of AASB 9. However, for a fair value hedge of the interest rate exposure of a portion of a portfolio of financial assets or financial liabilities, an entity may, in accordance with paragraph 6.1.3 of AASB 9, apply the hedge accounting requirements in this Standard instead of those in AASB 9. In that case the entity must also apply the specific requirements for fair value