Document ID: chunk:federal_register_of_legislation:F2024C00047:front:0:p13
Version: federal_register_of_legislation:F2024C00047
Segment Type: other
Provision Reference: 
Character Range: 32600–35341

shall use the same level of aggregation or disaggregation it uses for disclosure requirements of related information in this Standard and AASB 13 Fair Value Measurement.

The risk management strategy
22 [Deleted]
22A An entity shall explain its risk management strategy for each risk category of risk exposures that it decides to hedge and for which hedge accounting is applied. This explanation should enable users of financial statements to evaluate (for example):
(a) how each risk arises.
(b) how the entity manages each risk; this includes whether the entity hedges an item in its entirety for all risks or hedges a risk component (or components) of an item and why.
(c) the extent of risk exposures that the entity manages.
22B To meet the requirements in paragraph 22A, the information should include (but is not limited to) a description of:
(a) the hedging instruments that are used (and how they are used) to hedge risk exposures;
(b) how the entity determines the economic relationship between the hedged item and the hedging instrument for the purpose of assessing hedge effectiveness; and
(c) how the entity establishes the hedge ratio and what the sources of hedge ineffectiveness are.
22C When an entity designates a specific risk component as a hedged item (see paragraph 6.3.7 of AASB 9) it shall provide, in addition to the disclosures required by paragraphs 22A and 22B, qualitative or quantitative information about:
(a) how the entity determined the risk component that is designated as the hedged item (including a description of the nature of the relationship between the risk component and the item as a whole); and
(b) how the risk component relates to the item in its entirety (for example, the designated risk component historically covered on average 80 per cent of the changes in fair value of the item as a whole).

The amount, timing and uncertainty of future cash flows
23 [Deleted]
23A Unless exempted by paragraph 23C, an entity shall disclose by risk category quantitative information to allow users of its financial statements to evaluate the terms and conditions of hedging instruments and how they affect the amount, timing and uncertainty of future cash flows of the entity.
23B To meet the requirement in paragraph 23A, an entity shall provide a breakdown that discloses:
(a) a profile of the timing of the nominal amount of the hedging instrument; and
(b) if applicable, the average price or rate (for example strike or forward prices etc) of the hedging instrument.
23C In situations in which an entity frequently resets (ie discontinues and restarts) hedging relationships because both the hedging instrument and the hedged item frequently change (ie the entity uses a dynamic process in which both