Cash flow hedge

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.

Cash flow hedge

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.