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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

Abstract: 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)
Date: 2014
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