FREQUENTLY ASKED QUESTIONS
Be informed
WE CAN ANTICIPATE OUR COMPANY'S FINANCIAL RISKS, BUT WE CANNOT DETERMINE AND MEASURE IT IN A CLEAR MANNER.
We can prepare a summary report on the financial risks faced by your company as a result of a healthcheck work with you.
WE ARE NOT SURE HOW WE WILL RESPOND THE IDENTIFIED FINANCIAL RISKS
After our preliminary study, we can offer you the most efficient financial risk management strategies (hedge strategies) that can be utilised to manage the existing risks.
WE CANNOT DETERMINE THE POSSIBLE BENEFITS AND RISKS OF USING DERIVATIVE FINANCIAL INSTRUMENTS.
We can share with you ,the possible derivative financial instruments that you may consider using according to your current financial risks & operations. Then, we can help you with the pricing of related derivative financial instruments.
WE HAVE GOT DERIVATIVE FINANCIAL INSTRUMENTS PURCHASED EARLIER, BUT WE CANNOT APPLY HEDGE ACCOUNTING.
We can prepare the most appropriate hedge accounting setups for your company in accordance with IFRS 9 with existing or planned derivative financial instruments.
IS IT A REQUIREMENT TO HAVE A DERIVATIVE FINANCIAL INSTRUMENT IN OUR FINANCIAL STATEMENTS TO APPLY HEDGE ACCOUNTING?
No. Hedge accounting is an accounting practice that aims to eliminate the imbalance that occurs in the income statement as a result of the cash flow timing or measurement differences between the hedged risk and the hedging instrument. It is not mandatory to protect the risks with "derivative financial instruments". (Future foreign currency sales etc. Hedge accounting applications can also be made with non-derivative financial assets / liabilities.)