This publication (pdf 536kb) provides a broad overview of a number of common issues associated with hedge accounting under IAS 39, 'Financial instruments: Recognition and measurement', including construction of hedge effectiveness tests and suggests some strategies that may minimise hedge ineffectiveness.
There are separate sections dealing with hedging interest rate risk, hedging foreign exchange risk and hedging commodity price risk.
Hard copies have been mailed to Assurance senior managers and above. Internal users can order further copies from Publications on 77 24999 (quote reference PWC/ABAS026). This publication will not be mailed automatically to external users – to order hard copies, please contact PwC inform. For an example covering letter, internal users should click here.