Practical guide on general hedge accounting Dec 2013 | страница 11

Practical guide

instrument to achieve an accounting outcome that is inconsistent with the purpose of hedge accounting. This
does not imply that the hedge relationship must be perfect, but only that the weightings of the hedging
instruments and hedged item actually used are not selected to introduce or to avoid accounting ineffectiveness.
In some cases, there are commercial reasons for particular weightings of the hedged item and the hedging
instrument even though they create hedge ineffectiveness. This is the case, for example when using
standardised contracts that have a defined contract size (for instance, 1 standard aluminium future contract in
the LME has a contract size of 25 ۛ