The company is exposed to market risk with respect to commodity price fluctuations particularly purchase of sweeteners, metals, juices, PET and fuels. The company will buy or sell the product at a negotiated price a few weeks prior to delivery or at delivery. Please enter your valid Email ID.
Has the entity retained control of the asset?
When a derivative instrument no longer meets the criteria of a hedging derivative instrument, account for it as an investments derivative instrument. Although the power distribution industry has the greatest exposure, other companies may have a lot at risk, too.
Specifically identifiable property if fair price for accounting standards apply to other significant financial instruments that specified pricing assets? It has been interesting to note that relatively few companies early adopted the new hedge accounting guidance. Basis for Conclusions on the synthetic instrument method, scope, hybrid instruments, and hedgeable items.