Cash flow hedge accounting according to IAS 391

Derivatives are one of the ways to ensure financial risks. Although the main purpose of using derivatives is risk ensuring through hedging, their use can be much broader, such as trading which includes: price speculation or arbitrage. In this contribution we focus on the analysis of derivative as a hedging instrument allowing determination a fixed future price of the underlying financial instrument in relation to cash flow from hedged item in accordance with IAS 39. IAS 39 distinguishes three types of hedge: fair value hedge, cash flow hedge and net investment hedge. The main goal of this contribution is to analyze cash flow hedge through derivatives as a tool for ensuring financial risks in accordance with IAS 39 and subsequent application of analyzed issue on a concrete example.