Foreign exchange forward contract and IFRS 9 Hedge Accounting Reforms – A Closer Reflection Of Risk Management?: Difference between pages

Latest revision as of 09:45, 8 October 2014

Redirect to:

@@ Line 1: / Line 1: @@
-A transaction which solely involves the exchange of two different currencies:
+#REDIRECT [[IFRS 9 hedge accounting reforms: a closer reflection of risk management?]]
-<nowiki>
-  (i) on a specific future date
-  (ii) at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.</nowiki>
-Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
-For example known or likely future currency receivables and payables.
-They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.
-Also known as a Forward foreign exchange contract, or a Foreign exchange forward.
-== See also ==
-* [[Hedging]]
-* [[Non-deliverable forward]]
-* [[Synthetic]]