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 ...

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 ...

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 ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

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 ...

The Financial Accounting Standards Board (FASB) has introduced an Accounting Standards Update (ASU) that expands the scope of hedge accounting. The update addresses five main areas, allowing companies ...

AF: Why have bank treasuries increased inquiries into hedge accounting? AJ: One of the key reasons for this has been the increase in the interest rate over the last few years. Bank treasuries are ...