Assessing highly probable cash flows in light of COVID-19
There are several accounting considerations the COVID-19 pandemic has
triggered in relation to MFRS 9. In our view, one of the most significant is in relation to hedge accounting and highly probable cash flows. A key criterion relating to cash flow hedges over forecast transactions relates to the requirement for the hedged cash flows to be highly probable.
During the COVID-19 pandemic an entity therefore may need to consider if the hedged cash flows still meet the highly probable assessment.
Our publication explains the highly probable assessment and what entities should do if the cash flows are no longer highly probable.
Read the full publication to know more.