hedge-accounting-advisor

Name: hedge-accounting-advisor
Author: Raishin

17stars3forks

How to install hedge-accounting-advisor?

raishin/vanguard-frontier-agentic/hedge-accounting-advisor

$npx -y skills add Raishin/vanguard-frontier-agentic --skill hedge-accounting-advisor

Installs into the current project.

Summary

Multi-jurisdiction hedge accounting reference framework covering ASC 815 (US GAAP) and IFRS 9 hedge designation, effectiveness testing, OCI mechanics, IFRS 9 rebalancing, cost-of-hedging approach, discontinuation rules, embedded derivatives, and local GAAP treatments (German HGB

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SKILL.md

1	# Hedge Accounting Advisor — Reference Skill
2
3	## Purpose
4
5	Provide the complete multi-jurisdiction framework for hedge accounting advisory — from hedge type classification and instrument eligibility through effectiveness testing methodologies, OCI mechanics, rebalancing, cost-of-hedging, discontinuation rules, embedded derivatives, and local GAAP treatments.
6
7	---
8
9	## Part 1: Regulatory Framework Overview
10
11	### Primary Standards
12
13	\| Standard \| Jurisdiction \| Hedge Accounting Scope \|
14	\|---\|---\|---\|
15	\| ASC 815 \| US GAAP \| Fair value hedges, cash flow hedges, net investment hedges; embedded derivatives (ASC 815-15) \|
16	\| IFRS 9 (Chapter 6) \| IFRS jurisdictions \| Fair value hedges, cash flow hedges, net investment hedges; IAS 39 macro hedge carve-out via IAS 39.81A \|
17	\| IAS 39 \| Legacy IFRS (replaced by IFRS 9 for most; retained as macro hedge option) \| Same three hedge types; stricter bright-line effectiveness tests (80–125%) \|
18	\| German HGB §254 \| German statutory \| Bewertungseinheit (valuation unit) — specific rules for hedge accounting under German commercial law \|
19	\| JGAAP ASBJ No.10 \| Japan statutory \| Deferral hedge accounting; allocation method; special treatment for interest rate swaps \|
20	\| CAS 24 \| Chinese GAAP \| Broadly converged with IFRS 9 since 2017 revision \|
21	\| Ind AS 109 \| Indian GAAP \| Identical to IFRS 9 Chapter 6 \|
22
23	Official documentation:
24	- ASC 815: https://asc.fasb.org/815
25	- IFRS 9: https://www.ifrs.org/content/dam/ifrs/publications/html-standards/english/2024/issued/ifrs9.html
26	- IAS 39: https://www.ifrs.org/content/dam/ifrs/publications/html-standards/english/2024/issued/ias39.html
27	- HGB: https://www.gesetze-im-internet.de/hgb/
28	- ASBJ: https://www.asb.or.jp/en/accounting_standards/accounting_standards/
29	- Ind AS: https://www.icai.org/post/indian-accounting-standards
30
31	---
32
33	## Part 2: The Three Hedge Types
34
35	### 2.1 Fair Value Hedge
36
37	Definition: A hedge of the exposure to changes in the fair value of a recognized asset, recognized liability, or an unrecognized firm commitment (or a component thereof), attributable to a particular risk.
38
39	Accounting treatment:
40
41	\| Element \| ASC 815 \| IFRS 9 \|
42	\|---\|---\|---\|
43	\| Hedging instrument \| Remeasured at fair value; gain/loss in P&L \| Remeasured at fair value; gain/loss in P&L \|
44	\| Hedged item \| Adjusted for fair value changes attributable to hedged risk (basis adjustment) \| Adjusted for fair value changes attributable to hedged risk (basis adjustment) \|
45	\| Net P&L effect \| Offset of gain/loss on instrument vs. basis adjustment — only hedge ineffectiveness flows through P&L \| Same; ineffectiveness only in P&L \|
46	\| Basis adjustment amortization \| Amortized over remaining life when hedge is discontinued \| Amortized over remaining life when hedge is discontinued \|
47
48	Key difference: ASC 815 introduced the "last-of-layer" (now "portfolio layer") method allowing partial-term hedges of closed portfolios of prepayable financial assets (ASC 815-20-25-12A). IFRS 9 has no direct equivalent.
49
50	Firm commitment: A firm commitment can be a hedged item for fair value hedges under both ASC 815 (ASC 815-20-25-15) and IFRS 9 (IFRS 9.6.5.4). Under ASC 815, a firm commitment that is subsequently recognized is removed from the hedged item designation; under IFRS 9 the basis adjustment is applied when the asset/liability arising from the firm commitment is recognized.
51
52	### 2.2 Cash Flow Hedge
53
54	Definition: A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset, liability, or highly probable forecast transaction (or a component thereof).
55
56	Accounting treatment:
57
58	\| Element \| ASC 815 \| IFRS 9 \|
59	\|---\|---\|---\|
60	\| Effective portion of gain/loss on instrument \| Recognized in OCI (accumulated in AOCI) \| Recognized in OCI (accumulated in hedging reserve — "cash flow hedge reserve") \|
61	\| Ineffective portion \| Immediately to P&L \| Immediately to P&L \|
62	\| Reclassification from OCI to P&L \| When hedged transaction affects P&L (or when it results in recognition of a non-financial asset/liability — basis adjustment option) \| Same; basis adjustment applies when hedged item is a non-financial asset or liability (IFRS 9.6.5.11) \|
63	\| Forecast transaction no longer expected \| Reclas

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hedge-accounting-advisor

17stars3forks

View on GitHub

How to install hedge-accounting-advisor?

raishin/vanguard-frontier-agentic/hedge-accounting-advisor

$npx -y skills add Raishin/vanguard-frontier-agentic --skill hedge-accounting-advisor

Installs into the current project.

Summary

Files · 1

View on GitHub

SKILL.md

1	# Hedge Accounting Advisor — Reference Skill
2
3	## Purpose
4
5	Provide the complete multi-jurisdiction framework for hedge accounting advisory — from hedge type classification and instrument eligibility through effectiveness testing methodologies, OCI mechanics, rebalancing, cost-of-hedging, discontinuation rules, embedded derivatives, and local GAAP treatments.
6
7	---
8
9	## Part 1: Regulatory Framework Overview
10
11	### Primary Standards
12
13	\| Standard \| Jurisdiction \| Hedge Accounting Scope \|
14	\|---\|---\|---\|
15	\| ASC 815 \| US GAAP \| Fair value hedges, cash flow hedges, net investment hedges; embedded derivatives (ASC 815-15) \|
16	\| IFRS 9 (Chapter 6) \| IFRS jurisdictions \| Fair value hedges, cash flow hedges, net investment hedges; IAS 39 macro hedge carve-out via IAS 39.81A \|
17	\| IAS 39 \| Legacy IFRS (replaced by IFRS 9 for most; retained as macro hedge option) \| Same three hedge types; stricter bright-line effectiveness tests (80–125%) \|
18	\| German HGB §254 \| German statutory \| Bewertungseinheit (valuation unit) — specific rules for hedge accounting under German commercial law \|
19	\| JGAAP ASBJ No.10 \| Japan statutory \| Deferral hedge accounting; allocation method; special treatment for interest rate swaps \|
20	\| CAS 24 \| Chinese GAAP \| Broadly converged with IFRS 9 since 2017 revision \|
21	\| Ind AS 109 \| Indian GAAP \| Identical to IFRS 9 Chapter 6 \|
22
23	Official documentation:
24	- ASC 815: https://asc.fasb.org/815
25	- IFRS 9: https://www.ifrs.org/content/dam/ifrs/publications/html-standards/english/2024/issued/ifrs9.html
26	- IAS 39: https://www.ifrs.org/content/dam/ifrs/publications/html-standards/english/2024/issued/ias39.html
27	- HGB: https://www.gesetze-im-internet.de/hgb/
28	- ASBJ: https://www.asb.or.jp/en/accounting_standards/accounting_standards/
29	- Ind AS: https://www.icai.org/post/indian-accounting-standards
30
31	---
32
33	## Part 2: The Three Hedge Types
34
35	### 2.1 Fair Value Hedge
36
37	Definition: A hedge of the exposure to changes in the fair value of a recognized asset, recognized liability, or an unrecognized firm commitment (or a component thereof), attributable to a particular risk.
38
39	Accounting treatment:
40
41	\| Element \| ASC 815 \| IFRS 9 \|
42	\|---\|---\|---\|
43	\| Hedging instrument \| Remeasured at fair value; gain/loss in P&L \| Remeasured at fair value; gain/loss in P&L \|
44	\| Hedged item \| Adjusted for fair value changes attributable to hedged risk (basis adjustment) \| Adjusted for fair value changes attributable to hedged risk (basis adjustment) \|
45	\| Net P&L effect \| Offset of gain/loss on instrument vs. basis adjustment — only hedge ineffectiveness flows through P&L \| Same; ineffectiveness only in P&L \|
46	\| Basis adjustment amortization \| Amortized over remaining life when hedge is discontinued \| Amortized over remaining life when hedge is discontinued \|
47
48	Key difference: ASC 815 introduced the "last-of-layer" (now "portfolio layer") method allowing partial-term hedges of closed portfolios of prepayable financial assets (ASC 815-20-25-12A). IFRS 9 has no direct equivalent.
49
50	Firm commitment: A firm commitment can be a hedged item for fair value hedges under both ASC 815 (ASC 815-20-25-15) and IFRS 9 (IFRS 9.6.5.4). Under ASC 815, a firm commitment that is subsequently recognized is removed from the hedged item designation; under IFRS 9 the basis adjustment is applied when the asset/liability arising from the firm commitment is recognized.
51
52	### 2.2 Cash Flow Hedge
53
54	Definition: A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset, liability, or highly probable forecast transaction (or a component thereof).
55
56	Accounting treatment:
57
58	\| Element \| ASC 815 \| IFRS 9 \|
59	\|---\|---\|---\|
60	\| Effective portion of gain/loss on instrument \| Recognized in OCI (accumulated in AOCI) \| Recognized in OCI (accumulated in hedging reserve — "cash flow hedge reserve") \|
61	\| Ineffective portion \| Immediately to P&L \| Immediately to P&L \|
62	\| Reclassification from OCI to P&L \| When hedged transaction affects P&L (or when it results in recognition of a non-financial asset/liability — basis adjustment option) \| Same; basis adjustment applies when hedged item is a non-financial asset or liability (IFRS 9.6.5.11) \|
63	\| Forecast transaction no longer expected \| Reclas

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