IFRS9 and the release of the hedging reserve to the P&L

Question regarding IFRS9 and the release of the hedging reserve to the P&L. I have an FMCG customer where they apply cash flow hedging on for foreign currency purchases. The purchases relate to fixed price commercial contracts where they sell in local currency to the customer, but which contain an FX component where they need to purchase foreign currency for stock to manufacture (COGS).

Question1:

Under IFRS9 my understanding is that the hedging reserve release from OCI should only occur when the P&L is affected, How should the release be handled when for example, goods are purchased (hedging item) in month 1 and the FX contract also matures in month 1, but the sale to the customer is made in month 2? Should the hedging reserve be held back and released in month 2 even though the hedge item and instrument no longer exist? Or should the release happen in month 1? Or should it be treated differently? My understanding is that the hedging reserve should be held back until the customer sale occurs and the related COGS is recognised.

Question 2:

The other question is where cash flow hedging occurs generally for forecasted fx exposure related to manufacturing, and where the cost is not matched specifically to customer sales. I have seen examples where the hedging release actually happens in the month when the purchase invoice is captured, and that the AP and hedge instrument is then Fair valued accounted (cash flow hedging stopped) in future periods until both the hedging item and hedging instruments are cash settled. Is this correct or am I missing something? Can the customer elect to hold back the hedging reserve until the cash settlement occurs? My understanding is that when the purchase (invoice) is captured, that the hedging reserve is relased, however I have also seen examples where it is only released after the realised gain/loss from the FX contract and invoice occurs.

Much appreciated and look forward to your response.

Chris Schutte