Estado Oxidado Estado Reducido
CONCLUSIONES GENERALES
3.08 As described in Chapter 2, derivatives often are used in hedging activ ities as a way to manage risk. A hedge involves two separate items—generally the derivative4 and the hedged item. For example, an entity that uses an in terest rate swap as a hedge enters into an interest rate swap agreement (the derivative) to protect against interest rate risk associated with its debt (the hedged item).
3.09 FASB Statement No. 133 states that a primary purpose o f hedge ac counting is to link items or transactions whose changes in fair values or cash flows are expected to offset each other. The details of applying hedge accounting will vary depending on the type o f risk hedged, for example—
• Fair value hedge. The change in the fair value of a derivative des ignated and qualifying as a fair value hedge is recognized in earn ings and is offset by the portion o f the change in the fair value of the hedged asset or liability that is attributable to the risk being hedged. That accounting results in adjusting the carrying amount
3 FASB Statement No. 133 provides extensive detailed guidance on the application o f hedge accounting, including the circumstances in which hedge accounting is and is not permitted.
4 Hedge accounting may also be used for a hedge with a nonderivative financial instrument in very limited situations, as discussed in paragraphs 3.18 through 3.20.
o f the hedged asset or liability for changes in fair value. The ad justed carrying amount is then subject to consideration of the need to provide for impairment losses.
If the hedge is perfectly matched (that is, completely effective), the change in the derivative's fair value will equal the change in the hedged item's fair value. Therefore, there will be no effect on earnings. How ever, if the hedge is not completely effective (that is, there is some degree of ineffectiveness), earnings will be increased or decreased for the difference between the changes in the fair values o f the derivative and the hedged item. The increase or decrease in earnings represents the ineffective portion of the change in the derivative's fair value. • Cash flow hedge. The effective portion o f the change in the fair
value o f a derivative designated and qualifying as a cash flow hedge is reported in other comprehensive income, and the inef fective portion is reported in earnings.5 If the hedge meets the requirements for hedge accounting but the change in the deriva tive's fair value is less than the change in expected cash flows on the hedged transaction, an under-hedge situation results. Under FASB Statement No. 133, in this situation all of the change in the derivative’s fair value is reported in other comprehensive income. In the opposite, over-hedge situation, however, the excess o f the change in the derivative's fair value over the change in expected cash flows on the hedged transaction is reported in earnings as the ineffective portion of the change in the derivative's fair value. The remainder of the change in the derivative's fair value is reported in other comprehensive income.
There are two basic types of cash flow hedges. In some instances, the entity may hedge its exposure to variability in expected cash flow as sociated with a recognized asset or liability. For example, the entity may elect to hedge the risk associated with future interest payments on variable-rate debt. In other instances, an entity may hedge its risks associated with a forecasted transaction, such as a forecasted purchase or sale. Amounts in accumulated other comprehensive income gener ally are reclassified into earnings during the period the hedged asset, liability, or forecasted transaction affects earnings. However, FASB Statement No. 133 requires reclassifying amounts sooner in certain circumstances. For example, reclassification is required if a cash flow hedge is discontinued because it is probable that the forecasted trans action will not occur.
3.10 FASB Statement No. 133 also provides guidance on accounting for hedges o f an entity's foreign currency exposure under—
• A fair value hedge o f an unrecognized firm commitment or a rec
ognized asset or liability (including an available-for-sale security).
• A cash flow hedge o f a forecasted transaction, an unrecognized firm
commitment, the forecasted functional-currency-equivalent cash
5 FASB Statement No. 133 provides detailed guidance on the amounts to be reported in earnings and other comprehensive income.
flows associated with a recognized asset or liability, or a forecasted intercompany transaction.
• A hedge o f a net investment in a foreign operation.
In addition, FASB Statement No. 133 generally allows using hedge accounting for a foreign-currency denominated nonderivative financial instrument to be used to hedge changes in the fair value o f an unrecognized firm commitment, or a specific portion thereof, attributable to foreign currency exchange rates or a net investment in a foreign operation. The change in the financial instrument's fair value is accounted for in the same manner as a derivative used as a fair value hedge.
Examples and Illustrations. Exhibits 2-1 and 2-2 provide examples o f common fair value and cash flow hedging strategies.
3.11 The specific criteria for qualifying for hedge accounting vary depend
ing on the type o f hedge, but in general, FASB Statement No. 133 prescribes re quirements for designation and documentation o f the hedge and the expectation and assessment o f hedge effectiveness. To meet those requirements, manage ment should at the inception o f the hedge designate the derivative as a hedge and contemporaneously formally document the hedging relationship, the en tity's risk management objective and strategy for undertaking the hedge, the method o f assessing the effectiveness o f the hedge and the method for mea suring ineffectiveness. The documentation should also identify the hedging in strument, the hedged item, and the nature o f the risk being hedged. Without such documentation requirements, an entity could freely manipulate its finan cial statement results by retroactively identifying a hedged item, a hedged transaction, a method o f assessing effectiveness or the method for measuring ineffectiveness. Thus, the contemporaneous designation and documentation o f the hedging relationship is necessary (and required) in order to add verifiability to the hedge accounting model.
3.12 To qualify for hedge accounting, FASB Statement No. 133 also re
quires that an entity, both at inception of the hedge and on an ongoing basis, must expect that the hedging relationship will be highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk during the period the hedge is designated. Entities are also required to assess effectiveness on a retrospective basis throughout the life o f the hedge in order to conclude that the hedge has been highly effective in the past. FASB Statement No. 133 requires that an entity define at the time it designates a hedging rela tionship the method it will use to assess the hedge's effectiveness. It does not specify how effectiveness should be assessed other than that it should be consis tent with the risk management strategy documented for that particular hedg ing relationship and it should be reasonable. Additionally, FASB Statement No. 133 requires an entity to use the defined method consistently during the hedge period to assess at inception and on an ongoing basis whether it expects the hedging relationship to be highly effective in achieving offset and to measure the ineffective portion o f the hedge. Finally, FASB Statement No. 133 provides that an entity should assess effectiveness for similar hedges in a similar man ner and should justify the use o f different methods for assessing effectiveness for similar hedges.