Hedge accounting: formality to avoid asymmetries or correlation principle?

Abstract

The aim of this research work is to describe what the hedge accounting consists of, if it has a theoretical framework that supports it, understanding as the main theoretical framework the conceptual framework for the financial information issued by the IASB and mainly as is it is recognition of the financial statements. The analysis will be based on what is established in IAS 39, which is the norm in effect completely until December 31, 2017, but it will also be noted the main differences with NIIF 9, which entered into validity on January 1, 2018. It is good to clarify that while IFRS 9 has entered into validity, the same standard establishes that companies may use, by their own election, the hedge accounting in IAS 39 or IFRS 9. The foregoing means that IAS 39 is still valid in terms of hedge accounting. In this work will also indicate the three major positions that refer to existing hedge accounting and on what each position is sustained.
Also, it will make a reference about to the USGAAP (United States Generally Accepted Accounting Principles - accounting principles generally accepted in the United States) contained ASC (Accounting Standard Codification) in the relevant parts. The US GAAP model as for the recognition of the hedge accounting is quite similar to the IFRS model (International Financial Reporting Standard - International Financial Reporting Standards). Finally, the main conclusions derived from this esearch work will be presented.