Talk:Hedge accounting

Meaning
Meaning of Hedge accounting is not clear with this article? In which kind of business this method of accounting is used more???

A business in any industry may choose to apply hedge accounting. Larger businesses are more likely to use hedge accounting as they are more likely to hedge and hedge accounting is complicated.

Incorrect statement
The article states:

"All economic hedges aim to manage foreign currency exposure, meaning they are undertaken for the economic aim of reducing potential loss from fluctuations in foreign exchange rates."

This is too narrow. All fluctuations in cash flows, whether they are driven by exchange rate movements, interest rate movements, equity price movements, commodity price movements etc can warrant hedging.

See Hedge (finance)

First inform what is Hedge & how it works & calculated ? so students can understand —Preceding unsigned comment added by 38.117.113.3 (talk) 17:28, 6 May 2011 (UTC)

80%-125% rule not defined
If you click the '80%-125% rule' link, it leads to 'Hedge relationship (finance)' where the rule is still not described! So one of those articles should define the rule. 71.139.169.240 (talk) 15:56, 12 June 2012 (UTC)