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

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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 Chiều

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 Chiều

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

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

thanks sir

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Hari Hari 25/09/2021 - 1:36 Chiều

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 Chiều

Fair value hedge??

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K Vijay 25/09/2021 - 1:36 Chiều

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

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harshit Jain 25/09/2021 - 1:36 Chiều

Nicely taken

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

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

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

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 Chiều

Awesome Lecture sir

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

Sir asset pura likha karo

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shivakumar bv 25/09/2021 - 1:36 Chiều

Very nice explanation…. Thank u

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Biswajit Bal 25/09/2021 - 1:36 Chiều

Sir..it’s great plz upload 2nd part..

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Manisha Patel 25/09/2021 - 1:36 Chiều

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 Chiều

can we get video for solved questions sir?

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

Superb explanation sir…amazing concept clarity.

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suraj sharma 25/09/2021 - 1:36 Chiều

Awesome Sirji

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

Nice explained.. thank you

Reply
CA Durga prasad 25/09/2021 - 1:36 Chiều

Tqsm sir .

For lucid explanation ☺️

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kiranmai ch 25/09/2021 - 1:36 Chiều

It was really amazing,really conceptal

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UDIT SINGHAL 25/09/2021 - 1:36 Chiều

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 Chiều

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 Chiều

39:35 – Cash Flow Hedge

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Kartik Sharma 25/09/2021 - 1:36 Chiều

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 Chiều

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 Chiều

Hedge accounting concept….nice explanation

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Rohit Gupta 25/09/2021 - 1:36 Chiều

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 Chiều

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 Chiều

Where do you take classes for finals ?

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Raja Reddy 25/09/2021 - 1:36 Chiều

lock down me maja aya sir aapka class sunke tq

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

Super se bhi Kahi uper sir….

Reply
Ahmad Hussain 25/09/2021 - 1:36 Chiều

Really helpful…thanks a lot..❤️❤️❤️

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Nidhin 25/09/2021 - 1:36 Chiều

Thank you sir.

Reply
Salman Khan 25/09/2021 - 1:36 Chiều

U heled me a lot

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Salman Khan 25/09/2021 - 1:36 Chiều

Excellent couching

Reply
Varun Nair 25/09/2021 - 1:36 Chiều

Hedge Accounting starts from 36:05 mins

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Het Limbadiya 25/09/2021 - 1:36 Chiều

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

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

thanks sir…you are deep in your knowledge…

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

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 Chiều

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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