IFRS
Fair Value of FX Forward Contract
Adjusting the value of a hedge contract at month-end based on market exchange rates.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Derivative Asset / Liability | Asset/Liability (+) | 1,200.00 | - |
| Unrealized Gain on Hedge (OCI) | Equity (+) | - | 1,200.00 |
💡 Accountant's Note
If you use a Forward Contract to lock in a USD rate for an import, IFRS 9 requires you to record the 'value' of that contract as it changes each month.
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