A fair value hedge protects against a change in fair value of a recognized asset or liability or of an unrecognized firm commitment attributable to a particular risk. The characteristics of a fair ...

The Financial Accounting Standards Board issued a new accounting standards update Tuesday aimed at improving its existing hedge accounting guidance. It expands the hedged risks that are allowed to be ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

Hedging is a technique used to reduce or fully mitigate a risk exposure. Hedging is a commonplace practice in business, finance, investment management, and even everyday life. In a financial setting, ...

Are there special hedging provisions for section 988 transactions? Yes. In addition to the business hedging rules I address in our earlier Q&A with Andie series,[1] a special hedging provision is ...

Do the tax hedge rules apply to consolidated tax groups? Yes. The Treasury Regulations treat members of a consolidated corporate group as divisions of a single entity.[1] As a single entity, the risks ...

AF: Why have bank treasuries increased inquiries into hedge accounting? AJ: One of the key reasons for this has been the increase in the interest rate over the last few years. Bank treasuries are ...

For treasurers operating in the foreign exchange market, the inherent challenges of FX trading are well-known. The FX market is the largest and most liquid in the world; trading currencies means ...