Cash flow hedge
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A cash flow hedge is a hedge of the exposure to the variability of cash flow that
- is attributable to a particular risk associated with a recognized asset or liability. Such as all or some future interest payments on variable rate debt or a highly probable forecast transaction and
- could affect profit or loss (IAS 39, §86b)
This is mostly an accountant's definition.
See also
- Hedge accounting
- Accumulated other comprehensive income
- Statement of changes in equity