The hedged item refers to the item that the enterprise faces the risk of fair value or cash flow change, is designated as the hedged object and can be measured reliably.

An enterprise may designate a single project, project portfolio or its components as hedged projects:

1. Confirmed assets or liabilities.

2. Confirmed commitments that have not been confirmed. Among them, firm commitment refers to a legally binding agreement to exchange a specific amount of resources at an agreed price on a specific date or period in the future; Not yet recognized means not yet recognized in the balance sheet.

3. Possible expected transactions. Expected transactions refer to transactions that have not been promised but are expected to happen.

4. Net investment in overseas business.