The term "hedging" describes the securing of an unsettled position by setting up an offsetting position. "Hedge accounting" is the term used when opposing value developments for a hedged item subject to a risk and a hedging instrument are offset in accounting practice.
The aim of hedge accounting is to eliminate the net influence on the profit and loss account. Comprehensive regulations on hedge accounting are required due to the valuation concept in IAS 39 and IFRS 9, which values some financial instruments at fair value and some at amortised cost, and also due to the different effects on profit and loss. Some sections of IAS 39 were revised and extended in IFRS 9.