Hedging and new standards

CA Magazine | December 1, 2004| | Copyright

NEW FINANCIAL INSTRUMENTS STANDARDS WILL SOON BE ADOPTED AND IT'S TIME TO PREPARE FOR THEIR APPLICATION

In the November issue, the Finance regular began consideration of new accounting standards comprehensively addressing the accounting for financial instruments, which are expected to be issued shortly. This month, we present some ideas as to how a company might apply the aspects of the new standards addressing hedges.

Understand risk exposures and their effects on financial statements

Hedge accounting is optional. There is no requirement to adopt it. But many firms may do so to some extent ...

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