I have been looking for Alt-A post for a long time, but I can't find it. Only the English version was found.
/blog/2008/03/05/11373/those-UBS-assets-sale-rumors/
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Chapter I General Provisions
Chapter I General Principles
Article 1 In order to regulate the recognition and measurement of hedging, these Standards are formulated in accordance with the Accounting Standards for Enterprises-Basic Standards.
Article 1 In order to standardize the confirmation and measurement of hedging, these Standards are formulated in accordance with the Accounting Standards for Enterprises-Basic Standards.
Article 2 Hedging (hereinafter referred to as hedging) means that an enterprise designates one or more hedging instruments to avoid foreign exchange risk, interest rate risk, commodity price risk, stock price risk and credit risk. , so that the fair value or cash flow of the hedged instrument changes, and it is expected to offset the fair value or cash flow change of the hedged item in whole or in part.
Article 2 Hedging refers to one or more hedging instruments designated by an enterprise to avoid risks such as foreign exchange, interest rate, commodity price, stock price and credit. And it is expected that the fair value or cash flow of the hedging instrument will change to offset all or part of the change in the fair value or cash flow of the hedging item.
Article 3 Hedging is divided into fair value hedging, cash flow hedging and net investment hedging of overseas business.
Article 3 Hedges are divided into fair value hedging, cash flow hedging and net investment hedging in overseas operations.
(1) Fair value hedging refers to hedging the risk of changes in fair value of confirmed assets or liabilities, unconfirmed firm commitments or identifiable parts of the assets or liabilities and unconfirmed firm commitments.
(1) fair value hedging refers to the risk of changes in the fair value of recognized assets or liabilities or previously unconfirmed firm commitments, or the risk of changes in the identifiable part of the fair value of recognized assets or liabilities or previously unconfirmed firm commitments.
This kind of value change stems from some kind of risk, which will affect the profit and loss of the enterprise.
This change in value can be attributed to specific risks and may affect the profits or losses of enterprises.
(2) Cash flow hedging refers to hedging the risk of cash flow changes. This change in cash flow comes from specific risks related to confirmed assets or liabilities and expected transactions that are likely to occur, and will affect the profit and loss of enterprises.
(2) Cash flow hedging refers to hedging the risk of cash flow changes. This change in cash flow can be attributed to specific risks related to confirmed assets or liabilities or expected transactions that are likely to occur, and may affect the profit and loss of the enterprise.
(3) Hedging of net investment in overseas operations refers to hedging the foreign exchange risk of net investment in overseas operations. Net investment in overseas operations refers to the equity share of enterprises in the net assets of overseas operations.
(3) Hedging of net investment in overseas operations refers to hedging foreign exchange risks arising from net investment in overseas operations. The net investment in overseas operations refers to the rights and interests enjoyed by enterprises in the net assets of overseas operations.
Article 4 For hedging that meets the conditions stipulated in Chapter III of these Standards, an enterprise may adopt the hedging accounting method.
Article 4 For hedging that meets the conditions stipulated in Chapter III of these Standards, an enterprise may handle it through hedging accounting methods.
Hedging accounting method refers to the method that the offset result of the fair value change of hedging instrument and hedged item is included in the current profit and loss in the same accounting period.
Hedging accounting method refers to the method of recording the offset result of hedging instruments and the change of fair value of hedged items.
Chapter II Hedging Instruments and Hedged Items
Chapter II Hedging Instruments and Hedged Items
Article 5 A hedging instrument refers to a derivative instrument designated by an enterprise for hedging, whose fair value or cash flow change is expected to offset the fair value or cash flow change of the hedged item. In order to hedge foreign exchange risks, non-derivative financial assets or non-derivative financial liabilities can also be used as hedging instruments.
Article 5 The term "hedging instrument" refers to a derivative instrument designated by an enterprise for hedging, and the change in its fair value or cash flow is expected to offset the change in the fair value or cash flow of the hedged item. For foreign exchange risk hedging, non-derivative financial assets or non-derivative financial liabilities can be used as hedging instruments.
Article 6 When establishing a hedging relationship, an enterprise shall designate all or part of the hedging instrument (excluding a certain period within the remaining term of the hedging instrument), except for the following circumstances:
Article 6 To establish a hedging relationship, an enterprise shall designate all or a certain proportion of hedging instruments (excluding a certain period of time within the remaining term of hedging instruments), except for the following circumstances:
(1) For the option, the enterprise can separate the intrinsic value and time value of the option, and only designate the option as a hedging tool for the change of intrinsic value;
(1) For the option, the enterprise can separate the intrinsic value from the time value of the option and designate the option as a hedging tool only according to the change of its intrinsic value; and
(2) For a forward contract, an enterprise may separate the interest of the forward contract from the spot price, and designate the forward contract as a hedging instrument only for the change of the spot price.
(2) For a forward contract, an enterprise may separate the interest of the forward contract from the spot price, and only designate the forward contract as a hedging instrument based on the change of the spot price.
Article 7 An enterprise can usually specify one risk for hedging a single derivative product, but it can specify more than one risk for hedging a single derivative product if the following conditions are met at the same time:
Article 7 An enterprise can usually designate a single derivative as a risk hedging, but it can designate a single derivative as a hedging of one or more risks if the following conditions are met at the same time:
(1) All hedging risks can be clearly identified;
(1) All risks to be hedged are clearly identifiable;
(2) The hedging effectiveness can be proved;
(2) The effectiveness of the hedging may be proved; and
(3) It can ensure that there is a specific designated relationship between derivatives and different risk positions.
(3) It can ensure that there is a specific correspondence between derivatives and different risk positions.
Hedging effectiveness refers to the extent to which changes in the fair value or cash flow of hedging instruments can offset changes in the fair value or cash flow of hedging items caused by hedging risks.
Hedging effectiveness refers to the extent to which changes in the fair value or cash flow of hedging instruments can offset changes in the fair value or cash flow of hedged items due to hedging risks.
Article 8 An enterprise may designate a combination of two or more derivative instruments or a certain proportion of the combination as hedging instruments.
Article 8 An enterprise may designate a combination of two or more derivative instruments or a certain proportion of the combination as hedging instruments.
For foreign exchange risk hedging, an enterprise may designate a combination of two or more non-derivative instruments or a certain proportion, or a combination of derivative instruments and non-derivative instruments or a certain proportion as hedging instruments.
For foreign exchange hedging, an enterprise may designate a combination of two or more non-derivative instruments or a certain proportion of the combination, or a combination of derivative instruments and non-derivative instruments or a certain proportion of the combination as hedging instruments.
Interest rate upper and lower limit options or options consisting of issuing options and purchasing options are essentially equivalent to options issued by enterprises (that is, enterprises charge net option fees) and cannot be designated as hedging instruments.
For the call option, or the option consisting of issuing option and buying option, if its essence is equivalent to the option issued by the enterprise (that is, the enterprise charges the net option), the enterprise cannot designate it as a hedging tool.
Article 9 The hedged items refer to the following items that an enterprise faces the risk of changes in fair value or cash flow and is designated as hedged objects:
Article 9 The hedged items refer to the following items that an enterprise faces changes in fair value or cash flow and is designated as the hedged target:
(1) Assets, liabilities, confirmed commitments, transactions that are expected to happen or net investment in overseas operations;
(1) Single confirmed assets, liabilities, firm commitments, expected transactions with high probability or net investment in overseas operations;
(2) A group of confirmed assets, liabilities, firm commitments, expected probable transactions or net investment in overseas operations with similar risk characteristics.
(2) A group of confirmed assets, liabilities, firm commitments, probable expected transactions or net investment in overseas operations with similar risk characteristics. and
(3) A part of a financial asset or financial liability portfolio that shares the interest rate risk in the same hedging (only applicable to fair value portfolio hedging of interest rate risk).
(3) A part of a financial asset or financial liability portfolio that shares the same hedging interest rate risk (only applicable to the hedging portfolio that bears the interest rate risk at fair value).
Firm commitment refers to a legally binding agreement to exchange a certain amount of resources at an agreed price on a specific date or period in the future.
"Firm commitment" refers to an agreement with legal control to exchange a certain amount of resources at an agreed price on a certain date or a certain period in the future.
Expected transactions refer to transactions that have not been promised but are expected to happen.
A forecast transaction refers to a transaction that is not promised but is expected to happen.
Article 10 Where the hedging risk is credit risk or foreign exchange risk, the held-to-maturity investment may be designated as the hedged item.
Article 10 If the hedging risk is credit risk or foreign exchange risk, the held-to-maturity investment can be designated as the hedged item.
Hedging risk is interest rate risk or prepayment risk, and held-to-maturity investment cannot be designated as hedged item.
If the hedging risk is interest rate risk or prepayment risk, the held-to-maturity investment should not be designated as a hedged item.
Article 11 If the exchange gains and losses of monetary items arising from internal transactions of enterprise groups cannot be completely offset in the consolidated financial statements, the foreign exchange risk of such monetary items can be designated as hedged items in the consolidated financial statements.
Article 1 1 If the exchange gains and losses of monetary items arising from intra-enterprise group transactions cannot be completely offset in the consolidated statements, the foreign exchange risk of such monetary items can be designated as hedged items in the consolidated financial statements.
If the expected transaction that is likely to occur within an enterprise group is priced in a currency other than the functional currency of the transaction (that is, foreign currency), and the related foreign exchange risk will affect the consolidated profit and loss, the foreign exchange risk can be designated as a hedged item in the consolidated financial statements.
For a highly probable intra-group transaction, if its price is denominated in a currency other than the functional currency of the transaction entity (that is, its price is denominated in an overseas currency), and the related foreign exchange risk will affect the consolidated financial statements, the foreign exchange risk can be designated as a hedged item in the consolidated financial statements.
Article 12 An enterprise may designate a financial asset or financial liability as a hedged item of risks related to its cash flow or a part of its fair value, and the hedging effectiveness of the financial asset or financial liability can be measured.
Article 12 For some risks related to the cash flow or fair value of financial liabilities or financial assets, if the hedging effectiveness can be measured, an enterprise may designate financial assets or financial liabilities as hedged items according to the risks.
Article 13 For fair value hedging of interest rate risk of financial assets or financial liabilities, assets or liabilities with a certain amount (such as RMB, USD or Euro) may be designated as hedged items.
Article 13 In the fair value hedging of interest rate risk of financial assets or financial liabilities portfolio, assets or liabilities denominated in a certain currency (such as RMB, USD or Euro) may be designated as hedged items.
Article 14 An enterprise may designate all cash flows of financial assets or financial liabilities as hedged items.
Article 14 An enterprise may designate all cash flows of financial assets or financial liabilities as hedged items.
However, if a part of the cash flow of a financial asset or financial liability is designated as a hedged item, the cash flow of the designated part shall be less than the total cash flow of the financial asset or financial liability.
However, if only a part of the cash flow of a financial asset or financial liability is designated as a hedged item, the designated part shall be less than the total cash flow of the financial asset or financial liability.
Article 15 If a non-financial asset or a non-financial liability is designated as a hedged item, the hedging risk shall be all risks or foreign exchange risks related to the non-financial asset or non-financial liability.
Article 15 If a non-financial asset or a non-financial liability is designated as a hedged item, the hedging risk shall be all risks or foreign exchange risks related to the non-financial asset or non-financial liability.
Article 16 When hedging a portfolio of assets or liabilities with similar risk characteristics, each individual asset or liability in the portfolio shall bear the hedging risk at the same time, and the change in the fair value of each individual asset or liability in the portfolio caused by hedging risk is expected to be basically proportional to the change in the overall fair value of the portfolio caused by hedging risk.
Article 16 Where hedging is conducted through a portfolio of assets or liabilities with similar risk characteristics, each individual asset or liability in the portfolio shall bear the hedging risk at the same time, and the change in fair value of each individual asset or liability in the portfolio due to the hedging risk shall be generally proportional to the change in the overall fair value of the portfolio due to the hedging risk.
Chapter III Confirmation and Measurement of Hedging
Chapter III Confirmation and Measurement of Hedging
Article 17 Only when the fair value hedging, cash flow hedging or net investment hedging of overseas operations meet the following conditions at the same time can the hedging accounting methods specified in these Standards be used:
Article 17 If the fair value hedging, cash flow hedging or net investment hedging of overseas operations meet the following conditions at the same time, it can be handled in accordance with the hedging accounting method stipulated in these Standards:
(1) At the beginning of hedging, the enterprise has formally determined the hedging relationship (that is, the relationship between the hedging instrument and the hedged item) and prepared formal written documents on the hedging relationship, risk management objectives and hedging strategy.
(1) At the beginning of hedging, the enterprise shall formally determine the hedging relationship (that is, the relationship between the hedging instrument and the hedged item) and prepare a formal written document on the hedging relationship, risk management objectives and hedging strategy.
The document at least includes hedging instruments, hedging items, the nature of hedging risk and the evaluation method of hedging effectiveness.
The document shall at least specify the contents of hedging instruments, hedged items, the nature of hedged risks and the methods for evaluating hedging effectiveness. ..
Hedging must be related to specific identifiable and specified risks and ultimately affect the profit and loss of the enterprise.
Hedging should be related to the specified specific identifiable risks and ultimately affect the profit and loss of the enterprise.
(2) The hedging expectation is highly effective, which is in line with the risk management strategy originally determined by the enterprise for the hedging relationship.
(2) The hedging expectation is efficient and conforms to the risk management strategy, which is confirmed by the enterprise at the beginning of the hedging relationship.
(3) For the cash flow hedging of the expected transaction, the expected transaction should be likely to occur, and the enterprise must be exposed to the risk of cash flow changes that ultimately affect the profit and loss.
(3) For the cash flow hedging of the expected transaction, the expected transaction should be likely to occur, which will expose the enterprise to the risk of cash flow changes and ultimately affect the profit and loss.
(4) Hedging effectiveness can be measured reliably.
(4) Hedging effectiveness can be measured reliably.
(5) The enterprise shall continuously evaluate the effectiveness of hedging to ensure that the hedging is highly effective in the accounting period specified in the hedging relationship.
(5) The enterprise shall continuously evaluate the effectiveness of hedging to ensure that the hedging is highly effective in the accounting period of the designated hedging relationship.
Article 18 Where the hedging meets the following conditions at the same time, the enterprise shall consider the hedging highly effective:
Article 18 Where the hedging meets the following conditions at the same time, the enterprise shall consider it highly effective:
(1) At the beginning and after the end of the hedging, the hedging is expected to highly effectively offset the changes in fair value or cash flow caused by the hedging risk during the specified period;
(1) During the initial and subsequent periods of hedging, the hedging is expected to highly effectively offset the changes in fair value or cash flow caused by the hedging risk in a specific period;
(2) The actual offsetting result of hedging is between 80% and 125%.
(2) The actual offsetting result of hedging is in the range of 80% to 125%.
Article 19 When preparing interim or annual financial reports, an enterprise shall at least evaluate the effectiveness of hedging.
Article 19 When preparing interim or annual financial statements, an enterprise shall at least evaluate the hedging effectiveness.
Article 20 Where an interest rate risk is hedged, an enterprise may indicate the net interest rate risk of each period by compiling the maturity table of financial assets and financial liabilities, and evaluate the hedging effectiveness accordingly.
Article 20 For interest rate risk hedging, an enterprise shall indicate the net interest rate risk of each period by setting the maturity schedule of financial assets and financial liabilities, and evaluate the hedging effectiveness accordingly.