Hedging with Forward Contracts—IFRS Journal Entries (Inventory Purchases)

The notes summarize the two summary problems from the transcript on hedging with forward contracts under IFRS. The first problem shows a forward contract used to hedge a monetary liability when hedge accounting is not elected. The second problem demonstrates a cash flow hedge where hedge accounting is elected and OCI/AOCI effects are recognized to offset cash flow variability. Where rates are given, the notes include the calculations and the corresponding journal entries by date. Some formatting in the transcript was inconsistent; the entries below reflect the intended IFRS treatment and the numbers cited in the transcript (presented clearly and consistently). All mathematical expressions are shown in LaTeX format as requested.