Implementing Hedge Accounting with IFAS 71 (Case Study at PT ABC)
Pebriansyah, Aria Farah Mita

Faculty of Economic and Business Universitas Indonesia
Gedung Prof. Dr. Mohammad Sadli Kampus Sumitro Djojohadikusumo
Jln. Salemba Raya No. 4 Kampus UI Salemba, Jakarta, 10430, Indonesia

pebriansyah.arpah[at]gmail.com
aria.farahmita[at]ui.ac.id

Abstract

The most common risk faced by companies is financial risk. Financial risk can come from fluctuations in interest rates, currency exchange rates, stock prices, or commodity prices in the future. The best option in dealing with these risks is to carry out hedging transactions while applying hedge accounting. In addition to the benefits of risk mitigation, financial statements will be presented more stable. However, the application of hedge accounting must be paid quite expensively by the company because its implementation tends to be difficult. This research was conducted to study and answer the question of how the application of hedge accounting on hedging transactions at Bank ABC based on PSAK 71. This study used a qualitative method with case studies at Bank ABC. Qualitative data is processed through descriptive methods. The results of the study provide an overview of what ABC needs to prepare, such as updating accounting policies, making guidelines or procedures for implementing hedge accounting, making forms, and determining the methodology for measuring hedging effectiveness.

Keywords: Hedging- Hedge Accounting- Derivative- Risk Management- Profit and Loss Fluctuation

Topic: Accounting