The Prudential filter provided for in Article 468 of Regulation 575/2013, allows institutions to remove from the calculation of their CET 1 items, the amount of unrealized gains and losses accumulated since 31 December 2019 accounted for as fair value changes on debt instruments, measured at FVOCI in the balance sheet, corresponding to exposures as defined in paragraph 1. Where institutions hedge the interest rate risk component of such exposures, should the amount of unrealized gains and losses arising from the hedge transaction be removed from the calculation of their CET 1 items? Example: An institution holds €100m of governmental debt falling within the definition of Article 468 (1). At 31 December 2020 the accumulated loss since 31 December 2019 due to adverse price movements amounted to €15m. The interest rate risk of the aforementioned exposures has been hedged and an unrealised gain of €4m has been recognised through OCI Will the amount A as defined in Article 468 (1) amount to €15m or does the institution need to consider the gain arising from the hedging transaction as well and thus set A equal to €11m?