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Hedge accounting, derivatives, and synthetics: The FASB starts rethinking the rules
Author(s) -
Herz Robert H.
Publication year - 1994
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.3970050304
Subject(s) - pace , accounting , hedge accounting , hedge , management accounting , business , economics , financial accounting , accounting information system , mark to market accounting , ecology , geodesy , biology , geography
Accounting rule makers have been hard pressed to keep pace with the rapid development of new hedging products and techniques. As a result, the current accounting rules covering hedging and derivatives are piecemeal, often internally inconsistent and at times act as a deterrent to implementing sound economic management of these risks. This article summarizes the current rules and discusses current FASB deliberations on possible changes.