Auditor-derivatives and hedging

SUBJECT	IFRS	US GAAP
Derivatives and hedging
Derivatives and other financial instruments – measurement of financial instruments and hedging activities	Measure derivatives and hedge instruments at fair value; recognize changes in fair value in income statement except for effective cash flow hedges, where the changes are deferred in equity until effect of the underlying transaction is recognized in the income statement. Gains/losses from hedge instruments that are used to hedge forecast transaction may be included in cost of non-financial asset/liability (basis adjustment).	Similar to IFRS, except no 'basis adjustment' on cash flow hedges of forecast transactions.
Derivatives and other financial instruments – measurement of hedges of foreign entity investments	Gains/losses on hedges of foreign entity investments are recognized in equity, including hedge ineffectiveness on non-derivatives. For derivatives, record hedge ineffectiveness in the income statement. Gains/losses held in equity must be transferred to the income statement on disposal of investment.	Similar to IFRS, except all hedge ineffectiveness is recognized in the income statement.

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