Cash flow hedge

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A cash flow hedge 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 is mostly an accountant's definition.

See also

• Hedge accounting
• Accumulated other comprehensive income
• Statement of changes in equity