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General Interest
Companies Focus on Derivatives Compliance
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Companies Focus on
Derivatives Compliance
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FASB Statement no.133,
Accounting for Derivative Instruments and Hedging Activities,
issued in June 1998, requires that companies report their derivatives holdings at fair value and disclose the purpose and effectiveness of their hedging strategy. For most, the standard took effect January 1. A survey of senior executives revealed how companies planned to deal with it.
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Anxiety Index
Percentage of corporate executives concerned about how to
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Keeping Derivative Strategy Simple
Percentage of companies using the following to hedge risk:
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Doing It Themselves
Percentage of companies using management systems to track their hedging portfolios:
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Note: More than 100
Fortune
1,000 companies, whose annual sales and/or revenue ranged from more than $1 billion to less than $100 million, responded to the survey.
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Source: Solution133.com, LLC, a joint venture of PricewaterhouseCoopers LLP and Gifford Fong Associates, New York,
www.solution133.com
.
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