Hedge accounting

Roles that need it

• General Accountant
• Treasury Analyst
• ALM Analyst
• External Audit (Financial Services)
• Treasury Advisory Associate

Skills it belongs to

• International accounting standards (IFRS)
• FX risk and hedging instruments
• Derivatives and how they work

Related concepts

• IFRS 9 Financial InstrumentsIFRS 9 is the IFRS Accounting Standard for financial instruments, applied since 1 January 2018. It sets how financial assets are classified and measured, requires an expected credit loss allowance from day one through a three-stage model, and sets the rules for hedge accounting.
• Fair value hierarchy (IFRS 13 levels)The fair value hierarchy ranks fair value measurements by the inputs used: Level 1 uses quoted prices for identical assets in active markets, Level 2 uses other observable inputs, and Level 3 relies on unobservable inputs. IFRS 13 defines fair value as an exit price between market participants.
• Asset and liability management (ALM)Asset and liability management is the management of a balance sheet's interest rate, liquidity and funding risks so that assets and liabilities fit together in maturity, currency and rate. ALM teams run the ALCO (asset and liability committee), hedging and funds transfer pricing.

Sources

• IFRS 9 Financial Instruments, IFRS Foundation (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.