Home » Financial Instruments – Hedge – IndAS 109 (Cash Flow Hedge & Fair Value Hedge) by CA. Jai Chawla financial instrument

Financial Instruments – Hedge – IndAS 109 (Cash Flow Hedge & Fair Value Hedge) by CA. Jai Chawla financial instrument

by LKJHGrTfghDgh



In this video i have discussed the concept of Cash Flow hedge and Fair value hedge relevant for CA Final FR (Old and New) Syllabus students. For more details …

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Financial Instruments - Hedge - IndAS 109 (Cash Flow Hedge & Fair Value Hedge) by CA. Jai Chawla

Financial Instruments – Hedge – IndAS 109 (Cash Flow Hedge & Fair Value Hedge) by CA. Jai Chawla

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Financial Instruments – Hedge – IndAS 109 (Cash Flow Hedge & Fair Value Hedge) by CA. Jai Chawla
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41 comments

manu Bhai 25/09/2021 - 1:36 PM

sir ji naya company incorporate hua lekin operation start nahi hua toh audit fees preliminary expenditure mein charge karege kya.

Reply
Yannib Sharma 25/09/2021 - 1:36 PM

Thank you for the video. You're gifted. God bless you

Reply
Hemadri A 25/09/2021 - 1:36 PM

thanks sir

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Hari Hari 25/09/2021 - 1:36 PM

what an explation sir really fabulas i only understand little bit hindi even watched full class but i get full clarity on conscept thanks for uploading sir

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Anshu 25/09/2021 - 1:36 PM

Fair value hedge??

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K Vijay 25/09/2021 - 1:36 PM

I like the way of your teacher style and excellent experience..

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harshit Jain 25/09/2021 - 1:36 PM

Nicely taken

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Manohar Kanwar 25/09/2021 - 1:36 PM

Sir u r best….. U made hedge simple for me

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piyush agrawal 25/09/2021 - 1:36 PM

Very specific and to the point explanation. Great sir very nice teaching. Thanks for such clear explanation

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Gunjan Bothra 25/09/2021 - 1:36 PM

Awesome Lecture sir

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Ankit Kumar Bairwa 25/09/2021 - 1:36 PM

Sir asset pura likha karo

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shivakumar bv 25/09/2021 - 1:36 PM

Very nice explanation…. Thank u

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Biswajit Bal 25/09/2021 - 1:36 PM

Sir..it’s great plz upload 2nd part..

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Manisha Patel 25/09/2021 - 1:36 PM

Sir you made this topic very easy to grasp
Very beautifully explained and planning of teaching is very good.
Thank You Sir

Reply
lakshmi kb 25/09/2021 - 1:36 PM

can we get video for solved questions sir?

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Abhishek Mishra 25/09/2021 - 1:36 PM

Superb explanation sir…amazing concept clarity.

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suraj sharma 25/09/2021 - 1:36 PM

Awesome Sirji

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Envision CA Final 25/09/2021 - 1:36 PM Reply
Manvith Shetty 25/09/2021 - 1:36 PM

Nice explained.. thank you

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CA Durga prasad 25/09/2021 - 1:36 PM

Tqsm sir .

For lucid explanation ☺️

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kiranmai ch 25/09/2021 - 1:36 PM

It was really amazing,really conceptal

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UDIT SINGHAL 25/09/2021 - 1:36 PM

Sir, Can you tell me one more derivatives other than Future forwards, options and swaps?
Please

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Arman khan 25/09/2021 - 1:36 PM

Great Sir, Appreciable……finally after 4 years of becoming CA..now i have understood Hedging concept….Thank you so much for your efforts…

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Nitin Bhalla 25/09/2021 - 1:36 PM

39:35 – Cash Flow Hedge

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Kartik Sharma 25/09/2021 - 1:36 PM

Please make videos with less time and be precious
There are too much repitition

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swati agarwal 25/09/2021 - 1:36 PM

Hi sir very good morning,

In embedded derivative (Financial instruments): Illustration number 6 page 12.139 ICAI module,

We ( ABG private limited ) are importer of solar machine and we booked a forward $ buy conteact @ Rs. 65/$.

Payment due is : $ 50 million.

And if on maturity, $ reaches to Rs. 66/$.

Are we at gain or loss?

In my opinion, we are at gain because we locked the buying rate @ 65 rs./$.
And it has increased to we saved Rs. 1.

But in financial instruments, Ind as 109, they are writing we are at loss of rs. 1 /$. So total loss Rs. 50 million ( $50 million * rs.1/$ = rs. 50 million )

1.They first make a host purchase contract for buying $ and they it is denominated in functional currency i.e. Rupee.
($50 million * 65= rs. 3250 million).
Amount in functional currency is rs. 3250 million

2. They determined this amount of Rs. 3250 million using relevent forward exchange rate i.e. Rs. 65/$.

3. The embedded derivative is a forward currency contract to sell the applicable amount ($ 50 million) of the contract currency ($) for the functional currency (rupee), at the same forward exchange rate. Total comes same rupee 3250 million.

Therefore, the effect is that the fair value of the embedded derivative is intiallly 00.

4. Subsequent changes in the fair value of embedded derivative are recorded in profit and loss.

5. On delivery of the non-financial item (solar panel) the host contract is fulfilled and the embedded derivative is effectively settled.

A foreign currency creditor is recognised for the contract amount ($ tp million ), translated at the spot rate (Rs.66/$).

The closing carrying amount of embedded derivative ($ 50million *rs 1/$ = Rs. 5 crore ) is added to the functional currency amount (325 crores )

So total 325 crore +5 crore = 330 crores.

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Satya Dev 25/09/2021 - 1:36 PM

Hedge accounting concept….nice explanation

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Rohit Gupta 25/09/2021 - 1:36 PM

If a company wants to shift to hedge accounting, will it be an accounting policy change and to be applied retrospectively? If it is not accounting policy change then can it be applied prospectively?
Thanks Rohit

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SAI SREEKAR 25/09/2021 - 1:36 PM

My long standing doubt of hedge accounting is resolved today. I'm Grateful to you sir

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The PL Motivation ( Official ) 25/09/2021 - 1:36 PM

Where do you take classes for finals ?

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Raja Reddy 25/09/2021 - 1:36 PM

lock down me maja aya sir aapka class sunke tq

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CA FINAL with Aanchal 25/09/2021 - 1:36 PM

Super se bhi Kahi uper sir….

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Ahmad Hussain 25/09/2021 - 1:36 PM

Really helpful…thanks a lot..❤️❤️❤️

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Nidhin 25/09/2021 - 1:36 PM

Thank you sir.

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Salman Khan 25/09/2021 - 1:36 PM

U heled me a lot

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Salman Khan 25/09/2021 - 1:36 PM

Excellent couching

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Varun Nair 25/09/2021 - 1:36 PM

Hedge Accounting starts from 36:05 mins

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Het Limbadiya 25/09/2021 - 1:36 PM

Pls share embedded derivatives related part also pls sir…..

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Prabhjeet Singh 25/09/2021 - 1:36 PM

thanks sir…you are deep in your knowledge…

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kanhaiya kumawat 25/09/2021 - 1:36 PM

Thank u sir
Sir hedge accounting par icai ki module me jo Q h unka video nhi mila
Or aap is video me bol rhe ho ki Q next video me solve karenge

Reply
Kanika Jaswal 25/09/2021 - 1:36 PM

Amazing.. i am pursuing CPA in Canada and came to your videos for simplicity… Indian teachers are so talented.. Thank You

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