Playing it Safe with Hedge Accounting

September 12, 2014

Most companies only use derivatives that qualify for hedge accounting, but in some cases it is done, such as with commodities and certain currencies, balance sheet hedges or forward contracts for remeasurement hedges so that P&L volatility of the derivative offsets P&L volatility of re-measurement. Source: The NeuGroup FXMPG Benchmarking Survey, Summer 2014. 

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