Hedging, Hedging, Hedging

Let's divide this topic into three separate discussion threads and try to sort out this hedging thingie and forward contracts - these activities involve rather complex transactions. You may find Topic 815, “Derivatives and Hedging,” of the FASB Accounting Standards Codification to be helpful.

Keep adding to the thread you've chosen - if you choose a different thread, that will count as a different topic that you have chosen.

1. Hedging Foreign Exchange Risk

2. Hedging Foreign Currency Denominated Assets and Liabilities

3. Hedging involving forward contracts and options used as hedges of foreign currency firm commitments.