IFRS

Fair Value of FX Forward Contract

Adjusting the value of a hedge contract at month-end based on market exchange rates.

Account NameTypeDebit ($)Credit ($)
Derivative Asset / LiabilityAsset/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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