Maintaining Hedges
This topic discusses how to remove and adjust hedges as well as process hedge accumulated other comprehensive income (AOCI).
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Page Name |
Definition Name |
Usage |
|---|---|---|
|
HDG_WRKFLW |
Designate the hedge relationship or remove the hedged deal from the hedge, or adjust AOCI. |
|
|
Hedge AOCI Adjustment Page |
HDG_AOCI_RUN_CNTL |
Run the Adjust Hedge AOCI Application Engine process (HDG_AOCI_ADJ) to perform AOCI adjustments on your hedges. |
|
Hedge Effectiveness Page |
HDG_CUM_OFST_INQRY |
Search and review cumulative offset information for specified hedges. |
|
Hedge Summary Page |
HDG_SUMMARY |
View online report of summarized hedge information a specific hedge. |
Use the Hedge Maintenance page (HDG_WRKFLW) to designate the hedge relationship or remove the hedged deal from the hedge, or adjust AOCI.
Navigation:
This example illustrates the fields and controls on the Hedge Maintenance page. You can find definitions for the fields and controls later on this page.
AOCI is an account balance associated with the hedged transaction. It represents derivative (hedge deal) gains or losses that have been set aside from earnings and parked in the AOCI account instead. In essence, ¶ 30(b) says, "Set aside derivative gains or losses, but don't set aside too much." ¶ 30(b) addresses recognizing that you have set aside too much and puts the excess into an earnings account.
For Hedged Item
The fields available change, depending on the FAS 133 Hedge Type that you selected on the Hedge Designation page.
|
Hedge Type |
Page Fields |
Description |
|---|---|---|
|
All hedge types. |
Remove Hedged Item from Hedge |
Remove hedged item from the hedge. By itself, making this selection does not terminate the hedge. Note: This check box appears for all hedge types. |
|
Cash Flow Hedge FX Cash Flow Hedge |
Reclassify AOCI |
Select the Reclassify AOCI check box when reclassifying the adjusted other comprehensive income from cash flow hedges, and enter the Reclassify Amount. Or select the Will Not Occur AOCI Reclassify check box. |
|
Cash Flow Hedge FX Cash Flow Hedge |
Final Earnings Effect |
Select to include the effect of the specified Amount and Percentage on hedge final earnings. |
|
Cash Flow Hedge FX Cash Flow Hedge |
Current AOCI Balance |
Displays the current AOCI balance for the hedge. |
|
FX FV of Available-for-Sale FX FV of Firm Commitment Fair Value Hedge |
Amortize Carrying Amount Adj (amortize carrying amount adjustment) |
Select this check box if the adjustments of the carrying amount of the hedged item should be amortized to earnings. (¶ 24) Also enter the Amortization Period Begin Date and End Date. |