In this short whiteboard video, we provide an explanation of the economics behind and accounting for a fair value hedge. Want more information on ASC 815: Hedge Accounting? We created a collection of four courses, eligible for 4.0 CPE credits, that breaks down the rules for applying hedge accounting and the benefits of successfully applying it. These courses explore cash flow, fair value, and net investment hedges under ASC 815. Check out the collection here: https://www.gaapdynamics.com/product/... ___________________________________________________________________________ Learn more about GAAP Dynamics: https://www.gaapdynamics.com/ Check out our other online courses on the GAAP Dynamics Learning Library: https://www.gaapdynamics.com/individu... YouTube: / @gaapdynamics Instagram: / gaapdynamics TikTok: / gaapdynamics LinkedIn: / gaap-dynamics Facebook: / gaapdynamics Subscribe to GAAP Dynamics to see more videos like this!