Cash flow hedge

A cash flow hedge is a hedge of the exposure to the variability of cash flow that:
 * 1) is attributable to a particular risk associated with a recognized asset or liability. Such as all or some future interest payments on variable rate debt or a highly probable forecast transaction and
 * 2) could affect profit or loss (IAS 39, §86b)

This, essentially, is the accounting definition; for application, see and.