hedging


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Related to hedging: hedging bets, Currency Hedging

hedging

insuring against making a loss whilst holding stocks of a commodity. Usually achieved by taking an opposite position on the futures market.
References in periodicals archive ?
A typical company would establish coverage levels for varying timeframes, for example, hedging 100 percent of booked exposures, 50 percent of forecasted exposures over the next rolling 12 months, and 25 percent of forecasted exposures between 12 and 24 months out.
Although an exception is provided for hedging transactions, it applies only to transactions that have been timely and properly identified for tax purposes.
Thank you for the opportunity to discuss the proposed consolidated group hedging regulations(1) and, in particular, issues arising in connection with proposals from commentators (including TEI) to apply those regulations on a retroactive basis.
German Bundesbank president tietmeyer, chairman of the G-10 governors, indicated that the governors viewed recent bond market developments to some extent as a reflection of previous overshooting and indicated that they did not see the need for new regulations on derivatives and hedging techniques.
Companies can set hedging and issuance guidelines around this number that can be clearly and easily communicated.
Some taxpayers may be accounting for the gain or loss by spreading it over the entire remaining term of the hedged debt instrument, even though the hedging transaction relates to a shorter period of time.
On behalf of Tax Executives Institute, I am pleased to submit these comments on the proposed regulations under sections 446 and 1221, relating to the treatment of hedging transactions entered into by members of consolidated groups.
Corporate hedging activity should be about risk management.
1221-2(f)(2), if there is no identification, the transaction generally will not be treated as a hedging transaction.
In a related action, the IRS issued a notice of proposed rulemaking under section 446 (FI-5493)3 addressing the manner and timing of recognition of gain or loss realized on hedging transactions.
Management has now concluded that it needs to correct the accounting of certain derivative financial instruments under Statement of Financial Accounting Standards 133, Accounting for Derivative Instruments and Hedging Activities ("SFAS 133").