As discussed in Section 18.104.22.168.2.1, an entity may exclude components of a derivative’s fair value (and the resulting changes in the fair value of the excluded components) from its assessment of hedge effectiveness. An entity’s decision to either include or exclude components of fair value from the assessment of hedge effectiveness does not affect the basis adjustments to the hedged item in a qualifying fair value hedging relationship because such adjustments are determined independently from the changes in the fair values of the different components of the hedging instrument.
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