Illustrate out four (4) fundamental principles the accountant should observe to accomplish the objectives of accounting profession according to the IFAC ethics guidelines? Briefly discuss and illustrate out them.
Illustrate out the three (3) types of hedging relationships which are specified by IAS39.
Discuss in what circumstances entities might want to apply hedge accounting.
Discuss and illustrate out the conditions for hedge accounting.
The second of two principal objectives of IFRS7 is to require entities to disclose information that facilitates users of financial statements to assess the nature and extent of risks arising from financial instruments to which the entity is exposed at reporting date. These disclosure requirements focus on the risks which arise from financial instruments and how they have been managed by entity.
With reference to IFRS7:
Discuss in describe briefly the disclosure requirements of following types of risk:-
a. Credit risk
b. Liquidity risk
c. Market risk