What it is
A designated cash flow hedge defers the effective change in the derivative’s fair value in accumulated other comprehensive income and reclassifies it to earnings when the hedged transaction affects earnings. This workbook keeps the designation log, the period fair values and the AOCI balance for each hedge in one place.
The Periods tab turns beginning and ending fair values and settlements into a gain or loss, compares it with the hypothetical derivative, splits it between OCI and earnings, and records the reclassification. The AOCI tab rolls each hedge, shows the expected reclassification in the next twelve months, ties to the ledger and feeds a balanced entry.
When to use it
- Each reporting period for a company with interest rate swaps, foreign currency forwards or commodity contracts designated as cash flow hedges.
- When documenting new hedges at inception.
- When auditors request the AOCI roll-forward by hedge and the reclassification support.
What’s inside
- Designations tab: 15 hedges with risk, hedged item, method and documentation checks
- Periods tab: 30 hedge-period rows with fair value gain, effectiveness ratio and OCI split
- AOCI tab: roll-forward by hedge, expected reclassification, tax effect and ledger tie
- Entry tab: period journal entry that balances
- Open item status for hedges with missing documentation or probability
Standard cited
This template follows ASC 815. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What must be documented at inception?
The hedging relationship, the risk management objective and strategy, the derivative, the hedged forecasted transaction, the risk being hedged and how effectiveness will be assessed. Documentation is contemporaneous with designation.
How is the fair value gain computed here?
Ending fair value less beginning fair value plus settlements received. A settlement paid is entered as a negative number.
What is reclassified out of AOCI?
The deferred amount moves to the same earnings line as the hedged transaction in the period that transaction affects earnings. The amount is entered per hedge and period.
What if the forecasted transaction is no longer probable?
The status column shows Open item. Evaluate whether hedge accounting continues and whether amounts in AOCI move to earnings, and document the conclusion.
Related templates
- Fair Value Hierarchy Summary Workbook (ASC 820)
- Debt and Interest Rollforward Schedule
- Disclosure Checklist: Fair Value Measurements (ASC 820)
- Equity Rollforward Template (Corporation and LLC)
Last updated 11/05/2026. All free templates.