BC172B The Board amended IAS 39 in July 2008 to clarify the application of the principles that determine whether a hedged risk or portion of cash flows is eligible for designation in particular situations. This followed a request by the IFRIC for guidance.
BC172C The responses to the exposure draft Exposures Qualifying for Hedge Accounting demonstrated that diversity in practice existed, or was likely to occur, in two situations:
(a) the designation of a one‑sided risk in a hedged item
(b) the designation of inflation as a hedged risk or portion in particular situations.
Designation of a one-sided risk in a hedged item
BC172D The IFRIC received requests for guidance on whether an entity can designate a purchased option in its entirety as the hedging instrument in a cash flow
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