Hedging, Hedge Accounting, and Earnings Predictability

2021 ◽  
Author(s):  
Tharindra Ranasinghe ◽  
Shiva Sivaramakrishnan ◽  
Lin Yi
Keyword(s):  
Hedge Accounting ◽  
Earnings Predictability

Hedging, hedge accounting, and earnings predictability

2021 ◽  
Author(s):  
Tharindra Ranasinghe ◽  
Konduru Sivaramakrishnan ◽  
Lin Yi
Keyword(s):  
Hedge Accounting ◽  
Earnings Predictability

Use of Derivatives as Hedging Instruments and Application of Hedge Accounting : Effects on Income Volatility

2019 ◽  
Vol 44 (2) ◽  
pp. 1-38
Author(s):  
Hyun-Young Park ◽  
Ho-Young Lee
Keyword(s):  
Income Volatility ◽  
Hedge Accounting

Earnings Predictability, Bond Ratings, and Bond Yields

CFA Digest ◽  
2006 ◽  
Vol 36 (2) ◽  
pp. 34-35
Author(s):  
Christopher J. Sullivan
Keyword(s):  
Bond Yields ◽  
Bond Ratings ◽  
Earnings Predictability

Market Pricing of SFAS 133 Cash Flow Hedge Accounting and U.S. Multinationals' Derivatives Use

2008 ◽  
Author(s):  
Stephen D. Makar ◽  
Li Wang ◽  
Pervaiz Alam
Keyword(s):  
Cash Flow ◽  
Market Pricing ◽  
Hedge Accounting ◽  
Sfas 133

The Role of Debt in the Decision to Use Hedge Accounting

2012 ◽  
Author(s):  
Nancy Beneda
Keyword(s):  
Hedge Accounting

Determinants and Consequences of Firms' Derivative Accounting Decisions

2020 ◽  
Vol 5 (1) ◽  
pp. 81-114 ◽  
Author(s):  
Spencer Pierce
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
Financial Accounting ◽  
Firm Risk ◽  
Accounting Firms ◽  
Earnings Volatility ◽  
Hedge Accounting ◽  
Reported Earnings ◽  
Jel Classifications

ABSTRACTFinancial accounting standards require derivatives to be recognized at fair value with changes in value recognized immediately in earnings. However, if specified criteria are met, firms may use an alternative accounting treatment, hedge accounting, which is intended to better represent the underlying economics of firms' derivative use. Using FAS 161 disclosures, I examine determinants of hedge accounting use and the effects of hedge accounting on financial reporting and capital markets. I find variation in firms' hedge accounting use and provide evidence that compliance costs of applying hedge accounting affect firms' decision to use hedge accounting. Firms decrease their reported earnings volatility via derivatives that receive hedge accounting and could further decrease their earnings volatility if hedge accounting were applied to all their derivatives. Inconsistent with arguments given for using hedge accounting, I fail to find a decrease in investors' assessments of firm risk from using hedge accounting.JEL Classifications: M40; M41; G32.

scholarly journals A administração do lucro contábil e os critérios para determinação da eficácia do hedge accounting: utilização da correlação simples dentro do arcabouço do sfas nº 133

2003 ◽  
Vol 14 (31) ◽  
pp. 16-25
Author(s):  
Alexsandro Broedel Lopes ◽  
Nelson Seixas dos Santos
Keyword(s):  
Ad Hoc ◽  
Hedge Accounting ◽  
Sfas 133

O hedge accounting constitui inovação relevante introduzida pelo SFAS 133. Dentro desse critério, operações designadas como hedge deverão ter seus resultados diferidos para o momento no qual os itens sendo protegidos forem reconhecidos. Problema central nessa contabilização é a determinação do quê constitui uma operação de hedge. Os órgãos reguladores analisados neste trabalho apresentam critérios ad hoc para a determinação da eficácia das operações de hedge. Esses critérios não possuem propriedades estatísticas de previsão do comportamento dos ativos no futuro, condição necessária para o sucesso do hedge. Esse tipo de qualificação de hedge introduz enorme subjetividade no processo de reconhecimento contábil, fornecendo ampla margem para manipulação dos resultados. Este trabalho analisa e critica a opção adotada pelo FASB e outros órgãos reguladores e oferece sugestões.

Following Hedge Accounting May Lead to Restated Financial Statements

2005 ◽  
Author(s):  
Samir Nissan ◽  
Nobuo Kamata
Keyword(s):  
Financial Statements ◽  
Hedge Accounting

scholarly journals Currency risk management and hedge accounting - comparison of Polish and Ukrainian regulations

2018 ◽  
Vol 0 (2(40)) ◽  
pp. 37-43
Author(s):  
Мажена Ремлейн ◽  
Валентина Витальевна Ксендзук
Keyword(s):  
Risk Management ◽  
Currency Risk ◽  
Hedge Accounting

scholarly journals Hedge Accounting and Impact on the Financial Market

2013 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Doan Van Dinh
Keyword(s):  
Financial Market ◽  
Hedge Accounting
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