Queryin relation to AS 30/IAS 39

Arpit (Sr. BA) (24 Points)

16 September 2009  

Hi,

I am working on creating hedge accounting software solutions and have few queries in relation to the rules specified for qualification of a hedge designation -

1) In case an indian corp has exposure in CHF (swiss francs) ideally he would require to do a USD/CHF and USD/INR forward trade to reduce the forex risk. Does this qualify as a hegde under IAS 38 and AS 30? If yes then how is the effectiveness measured.

2) Can a corp use a combination of forwards and options as a hedge under the accounting norms?