Hedged item is an asset, liability, firm commitment, highly probable forecast transaction or net investment in a foreign operation that (a) exposes the entity to risk of changes in fair value or future cash flows and (b) is designated as being hedged (IAS 39 paragraphs 78–84 and AG98–AG101elaborate on the definition of hedged items).
Source: IAS 39 Financial Instruments: Recognition and Measurement.
