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Companies Focus on Derivatives Compliance

Please note: This item is from our archives and was published in 2001. It is provided for historical reference. The content may be out of date and links may no longer function.

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Companies Focus on
Derivatives Compliance

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.
 
Anxiety Index

Percentage of corporate executives concerned about how to

   
Keeping Derivative Strategy Simple

Percentage of companies using the following to hedge risk:

   
Doing It Themselves

Percentage of companies using management systems to track their hedging portfolios:

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.
Source: Solution133.com, LLC, a joint venture of PricewaterhouseCoopers LLP and Gifford Fong Associates, New York, www.solution133.com .