Derivative vs.

Non-derivative

Non-Derivative - Gross amount (literal nga naay exchange mahitabo between the
entity and the financial intermediary)
Derivative - Net amount (either si entity or financial intermediary kay makadawat
or makabayad. Just compare the receivable of the company vs. its payable to the
bank. If mas dako iyang receivable, no need to pay but rather kulektaha lang ang
difference)

To determine whether the entity will pay or receive cash at the date of settlement.
Just compare the value of the FC at the DOT vs. the value of the FC at the DOS.

Fair Value and Cash Flow Hedge designation applies only to the hedging instrument.
The sales/purchase transaction is accounted for as FV hedge.

FV hedge- the difference in exchange rates is reported in P or L

CF Hedge - the differense in exchange rates is reported in OCI