Risk Management Companies and Hedge Accounting

Sabin Armăşelu ()
Additional contact information
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: G10 M41 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://upet.ro/annals/economics/pdf/2014/part2/Armaselu.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:14:y:2014:i:2:p:5-12

Access Statistics for this article

More articles in Annals of the University of Petrosani, Economics from University of Petrosani, Romania
Bibliographic data for series maintained by Imola Driga ().