Risk Management Companies and Hedge Accounting
Sabin Armăşelu ()
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Sabin Armăşelu: Universiy of Craiova, Romania
Annals of the University of Petrosani, Economics, 2014, vol. 14, issue 2, 5-12
The increasing use of derivatives for risk management of a company lately has led to the need to report on an actual basis as these instruments and regulate these operations accounting. This paper proposes a presentation of hedging transactions and their accounting evaluating the impact, in terms of accounting, risk management derivatives on a company. Hedges are often ineffective. Overcoming the ineffectiveness of hedging operations can be achieved by proper designation of the hedging relationship and create an appropriate method to demonstrate hedge effectiveness.
Keywords: derivative; hedging; hedge accounting; financial assets; fair value (search for similar items in EconPapers)
JEL-codes: M41 G10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:14:y:2014:i:2:p:5-12
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