The use and complexity of derivative instruments
and hedging activities have increased significantly over the past several years.
Embedded derivative instruments
, and when an embedded derivative instrument
results in a hybrid instrument;
The Statement specifically requires governments to measure most derivative instruments
at fair value in their financial statements that are prepared using the economic resources measurement focus and the accrual basis of accounting.
The net loss for the current year included an operating loss of $5,840,000 and non-cash derivative instrument
income of $2,403,000.
New Jersey Resources (NYSE: NJR) today announced that it will delay filing its annual report on Form 10-K for the fiscal year ended September 30, 2007, with the Securities and Exchange Commission (SEC) in order to allow for the completion of a review of the accounting treatment for its derivative instruments
under Statement of Financial Accounting Standards 133 "Accounting for Derivative Instruments
and Hedging Activities" (SFAS 133), the requirements of which are highly technical, complex and have been subject to an evolving interpretation by the accounting community.
133, Accounting for Derivative Instruments
and Hedging Activities in June 1998 (see "The Decision on Derivatives," JofA, Nov.
The benefit of hedge accounting is that it allowed the Partnership to match the recognition of gains and losses on derivative instruments
with the settlement of the underlying hedged transactions.
A derivative instrument
is a financial instrument or other contract with all three of the following characteristics:
Net loss in the third quarter of 2015 was impacted by the non-cash impairment of oil and natural gas properties, the valuation allowance placed on the net deferred tax asset, and a non-cash loss on the mark-to-market of derivative instruments
IFIs aim to utilise derivative instruments
to hedge against risk and to improve risk monitoring practices.
It is intended to improve how state and local governments report information about derivative instruments
in their financial statements.
In this successor to Swap Financing (1989) and Swaps and Financial Derivatives (1994), an expert in the area of risk management, financial derivatives (instruments used to trade or manage assets), and capital markets touts the development of derivative instruments
as "perhaps the most significant aspect of capital markets in the last 20 years.
Issued in February 2006, FAS 155 amends FAS 133, Accounting for Derivative Instruments
and Hedging Activities and FAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.
Auditing Derivative Instruments
, Hedging Activities, and Investments in Securities; and Auditing Interests in Trusts Held by a Third-Party Trustee and Reported at Fair Value clarify that receiving a confirmation of fair value from a third party (including a trustee) is not enough to constitute adequate audit evidence with respect to the valuation assertion.
not traded on an exchange] derivative instruments
are important financial management tools that, in many respects, reflect the unique strength and innovation of American capital markets," said Arthur Levitt, then chairman of the Security and Exchange Commission, in 1998 testimony to Congress.