What does hedge accounting mean?
Definitions for hedge accounting
hedge ac·count·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word hedge accounting.
Wikipedia
Hedge accounting
Hedge accounting is an accountancy practice, the aim of which is to provide an offset to the mark-to-market movement of the derivative in the profit and loss account. There are two types of hedge recognized. For a fair value hedge, the offset is achieved either by marking-to-market an asset or a liability which offsets the P&L movement of the derivative. For a cash flow hedge, some of the derivative volatility is placed into a separate component of the entity's equity called the cash flow hedge reserve. Where a hedge relationship is effective (meets the 80%–125% rule), most of the mark-to-market derivative volatility will be offset in the profit and loss account. Hedge accounting entails much compliance - involving documenting the hedge relationship and both prospectively and retrospectively proving that the hedge relationship is effective.
Numerology
Chaldean Numerology
The numerical value of hedge accounting in Chaldean Numerology is: 6
Pythagorean Numerology
The numerical value of hedge accounting in Pythagorean Numerology is: 1
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"hedge accounting." Definitions.net. STANDS4 LLC, 2024. Web. 30 Apr. 2024. <https://www.definitions.net/definition/hedge+accounting>.
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