hedge-accounting-advisor

# Hedge Accounting Advisor — Reference Skill ## Purpose Provide the complete multi-jurisdiction framework for hedge accounting advisory — from hedge type classification and instrument eligibility through effectiveness testing methodologies, OCI mechanics, rebalancing, cost-of-hedging, discontinuation rules, embedded derivatives, and local GAAP treatments. --- ## Part 1: Regulatory Framework Overview ### Primary Standards | Standard | Jurisdiction | Hedge Accounting Scope | |---|---|---| | ASC 815 | US GAAP | Fair value hedges, cash flow hedges, net investment hedges; embedded derivatives (ASC 815-15) | | IFRS 9 (Chapter 6) | IFRS jurisdictions | Fair value hedges, cash flow hedges, net investment hedges; IAS 39 macro hedge carve-out via IAS 39.81A | | IAS 39 | Legacy IFRS (replaced by IFRS 9 for most; retained as macro hedge option) | Same three hedge types; stricter bright-line effectiveness tests (80–125%) | | German HGB §254 | German statutory | Bewertungseinheit (valuation unit) — specific rules for hedge accounting under German commercial law | | JGAAP ASBJ No.10 | Japan statutory | Deferral hedge accounting; allocation method; special treatment for interest rate swaps | | CAS 24 | Chinese GAAP | Broadly converged with IFRS 9 since 2017 revision | | Ind AS 109 | Indian GAAP | Identical to IFRS 9 Chapter 6 | Official documentation: - ASC 815: https://asc.fasb.org/815 - IFRS 9: https://www.ifrs.org/content/dam/ifrs/publications/html-standards/english/2024/issued/ifr...