ECOPETROL S.A. | CIK:0001444406 | 3

  • Filed: 4/26/2018
  • Entity registrant name: ECOPETROL S.A. (CIK: 0001444406)
  • Generator: DataTracks
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1444406/000114420418022451/0001144204-18-022451-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1444406/000114420418022451/ec-20171231.xml
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    • ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory

    4.1.5
    Hedging operations
     
    For purposes of hedge accounting, hedges are classified as:
     
    §
    Fair value hedges, when hedging the exposure to changes in fair value of a recognized asset or liability, or unrecognized firm commitment, or an identifiable portion of such asset, liability or firm commitment.
     
    §
    Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction.
     
    §
    Hedges of a net investment in a foreign operation.
     
    At the inception of the hedging relationship, the Group formally designates and documents the hedge relationship between the hedging instrument and the hedged item, together with its risk management objectives and strategy to perform hedging transactions. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are; assessed on an ongoing basis to determine that they have been highly effective throughout the financial reporting periods for which they were designated.