Companies often try to protect their assets from various risks in a process known as hedging. Think of hedging as being similar to buying auto insurance. When you're out driving your car, there is a ...

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 ...

Hedge documentation is important in both financial reporting and income taxation.For financial accounting purposes, on the date of the hedge, an entity must identify the hedged item, the instrument ...

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 ...

For public companies with a December 31, 2018, fiscal year-end, new hedge accounting rules will become effective on January 1, 2019. The FASB issued the new hedge accounting guidance on August 28, ...

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, ...

The Financial Accounting Standards Board has released its long-awaited hedging standard, the final component of its financial instruments convergence project with the International Accounting ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

Energy markets continue to be volatile and producers continue to hedge. During the first three quarters of 2018, gas prices remained relatively flat while crude prices had a bumpy climb from $60/bbl ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). A natural hedge is a management strategy that seeks to mitigate risk by ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...