Finance:Cash flow hedge

From HandWiki

A cash flow hedge[1] is a hedge of the exposure to the variability of cash flow that

  1. is attributable to a particular risk associated with a recognized asset or liability. Such as all or some future interest payments on variable rate debt or a highly probable forecast transaction and
  2. could affect profit or loss (IAS 39, §86b)

This, essentially, is the accounting definition; for application, see Financial risk management § Corporate finance and Hedge (finance) § Categories of hedgeable risk.

See also

References