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Hedge accounting
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Text Block [Abstract]    
Hedge accounting

6. Hedge accounting

In the three months period ended March 31, 2020 and in the year ended December 31, 2019, the objective for the Group was to hedge the risk generated by the US$ variation from the investments in USA, XP Holding International and XP Advisors Inc.

The Group has entered into forward contracts to protect against changes in future cash flows and exchange rate variation of net investments in foreign operations known as Non Deliverable Forward (“NDF”) contracts.

The Group undertakes risk management through the economic relationship between hedge instruments and hedged item, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors.

 

     Hedged item      Hedge instrument  
     Book Value      Variation in
value
recognized in
Other
comprehensive
income		      Nominal
value		      Variation in
the amounts
used to
calculate
hedge
ineffectiveness		  

Strategies

    Assets      Liabilities  

March 31, 2020

               

Foreign exchange risk

               

Hedge of net investment in foreign operations

      228,563        —          52,428        385,484        (56,496 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      228,563        —          52,428        385,484        (56,496 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2019

               

Foreign exchange risk

               

Hedge of net investment in foreign operations

      186,412        —          5,946        248,896        (7,133 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      186,412        —          5,946        248,896        (7,133 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

There was no ineffectiveness during March 31, 2020 and December 31, 2019 in relation to the foreign net investment hedge.

9. Hedge accounting

In the year ended December 31, 2019,2018 and 2017 the objective for the Group was to hedge the risk generated by the USD variation from the investments in USA, XP Holding International and XP Advisors Inc.

The Group contract Non-Deliverable Forward (“NDF”) operations to protect changes of future cash flows, exchange rate variation of net investments in foreign operations.

The Group undertakes risk management through the economic relationship between hedge instruments and hedged item, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors.

 

     Hedged item      Hedge instrument  
     Book Value      Variation in
value
recognized
in Other
comprehensive
income		      Nominal
value		      Variation in
the amounts
used to
calculate
hedge
ineffectiveness		  

Strategies

    Assets      Liabilities  

2019

               

Foreign exchange risk

               

Hedge of net investment in foreign operations

      186,412        —          5,946        248,896        (7,133 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      186,412        —          5,946        248,896        (7,133 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

2018

               

Foreign exchange risk

               

Hedge of net investment in foreign operations

      147,179        —          18,645        225,901        (17,495 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      147,179        —          18,645        225,901        (17,495 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

2017

               

Foreign exchange risk

               

Hedge of net investment in

foreign operations

      100,323        —          2,034        145,552        (2,386 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      100,323        —          2,034        145,552        (2,386 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

There was no ineffectiveness during 2019, 2018 and 2017 in relation to the foreign net investment hedge.