Document ID: chunk:federal_register_of_legislation:F2021C00192:body:0:p46
Version: federal_register_of_legislation:F2021C00192
Segment Type: other
Provision Reference: 
Character Range: 117370–122727

swap designated as the hedging instrument (CU8 million).
Dr                                                                                                                                             Derivative liability               CU9,445
                                                                                                                                               Cr                                 Profit or loss (gain)                                         CU9,445
To recognise the change in the fair value of the portion of the swap designated as the hedging instrument (CU8 million) (CU9,518 – CU18,963).
Dr                                                                                                                                             Profit or loss (loss)              CU9,445
                                                                                                                                               Cr                                 Separate line item in the statement of financial position     CU9,445
To recognise the change in the fair value of the hedged amount (CU8,009,518 – CU8,018,963).

IE25 The net effect on profit or loss (excluding interest income and interest expense) is nil reflecting that the hedge is fully effective.
IE26 Entity A makes the following accounting entry to amortise the line item balance for this time period:

Dr                                                    Profit or loss (loss)  CU11,378
                                                      Cr                     Separate line item in the statement of financial position     CU11,378(a)
To recognise the amortisation charge for the period.
  (a) CU22,755 ÷ 2

 End of month 3
IE27 During the third month there is no further change in the amount of assets or liabilities in the three-month time period. On 31 March 20X1 the assets and the swap mature and all balances are recognised in profit or loss.
IE28 Entity A makes the following accounting entries relating to this time period:

Dr                                                                                                                          Cash                               CU8,071,707
                                                                                                                            Cr                                 Asset (statement of financial position)                       CU8,000,000
                                                                                                                            Cr                                 Profit or loss (interest income)                              CU71,707
To recognise the interest and cash received on maturity of the hedged amount (CU8 million).
Dr                                                                                                                          Profit or loss (interest expense)  CU71,707
                                                                                                                            Cr                                 Profit or loss (interest income)                              CU62,115
                                                                                                                            Cr                                 Cash                                                          CU9,592
To recognise the interest received and paid on the portion of the swap designated as the hedging instrument (CU8 million).
Dr                                                                                                                          Derivative liability               CU9,518
                                                                                                                            Cr                                 Profit or loss (gain)                                         CU9,518
To recognise the expiry of the portion of the swap designated as the hedging instrument (CU8 million).
Dr                                                                                                                          Profit or loss (loss)              CU9,518
                                                                                                                            Cr                                 Separate line item in the statement of financial position     CU9,518
To remove the remaining line item balance on expiry of the time period.

IE29 The net effect on profit or loss (excluding interest income and interest expense) is nil reflecting that the hedge is fully effective.
IE30 Entity A makes the following accounting entry to amortise the line item balance for this time period:

Dr                                                    Profit or loss (loss)  CU11,377
                                                      Cr                     Separate line item in the statement of financial position     CU11,377(a)
To recognise the amortisation charge for the period.
  (a) CU22,755 ÷ 2

Summary
IE31 The tables below summarise:
(a) changes in the separate line item in the statement of financial position;
(b) the fair value of the derivative;
(c) the profit or loss effect of the hedge for the entire three-month period of the hedge; and
(d) interest income and interest expense relating to