How to Record Bunker Fuel Hedging Gains
Recording realized gains from derivative instruments used to hedge against fluctuations in bunker fuel prices.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash or Derivative Settlement Receivable | Asset | 12,000.00 | - |
| Realized Gain on Fuel Hedging | Revenue/Other Income | - | 12,000.00 |
💡 Accountant's Note
When a hedge is settled, the difference between the strike price and the market price results in a realized gain or loss that offsets physical fuel costs.
Practitioner & Systems Framework
💻 ERP Architecture
Mark-to-market adjustments should be recorded in OCI if using hedge accounting under IFRS 9.
⚠️ Audit Flags
Discrepancy between hedge settlement statements and recorded income.
📄 Required Documentation
Brokerage settlement statement and a copy of the hedging strategy document.
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