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

manu Bhai 24/09/2021 - 2:32 PM

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

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Yannib Sharma 24/09/2021 - 2:32 PM

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

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Hemadri A 24/09/2021 - 2:32 PM

thanks sir

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Hari Hari 24/09/2021 - 2:32 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 24/09/2021 - 2:32 PM

Fair value hedge??

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K Vijay 24/09/2021 - 2:32 PM

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

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harshit Jain 24/09/2021 - 2:32 PM

Nicely taken

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Manohar Kanwar 24/09/2021 - 2:32 PM

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

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piyush agrawal 24/09/2021 - 2:32 PM

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

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Gunjan Bothra 24/09/2021 - 2:32 PM

Awesome Lecture sir

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Ankit Kumar Bairwa 24/09/2021 - 2:32 PM

Sir asset pura likha karo

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shivakumar bv 24/09/2021 - 2:32 PM

Very nice explanation…. Thank u

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Biswajit Bal 24/09/2021 - 2:32 PM

Sir..it’s great plz upload 2nd part..

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Manisha Patel 24/09/2021 - 2:32 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 24/09/2021 - 2:32 PM

can we get video for solved questions sir?

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Abhishek Mishra 24/09/2021 - 2:32 PM

Superb explanation sir…amazing concept clarity.

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suraj sharma 24/09/2021 - 2:32 PM

Awesome Sirji

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Envision CA Final 24/09/2021 - 2:32 PM Reply
Manvith Shetty 24/09/2021 - 2:32 PM

Nice explained.. thank you

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CA Durga prasad 24/09/2021 - 2:32 PM

Tqsm sir .

For lucid explanation ☺️

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kiranmai ch 24/09/2021 - 2:32 PM

It was really amazing,really conceptal

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UDIT SINGHAL 24/09/2021 - 2:32 PM

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

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Arman khan 24/09/2021 - 2:32 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 24/09/2021 - 2:32 PM

39:35 – Cash Flow Hedge

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Kartik Sharma 24/09/2021 - 2:32 PM

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

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swati agarwal 24/09/2021 - 2:32 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 24/09/2021 - 2:32 PM

Hedge accounting concept….nice explanation

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Rohit Gupta 24/09/2021 - 2:32 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 24/09/2021 - 2:32 PM

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

Reply

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