Foreign Exchange Hedge

A foreign exchange hedge (FOREX hedge) is a method used by companies to eliminate or hedge foreign exchange risk resulting from transactions in foreign currencies (see Foreign exchange derivative). This is done using either the cash flow or the fair value method. The accounting rules for this are addressed by both the International Financial Reporting Standards (IFRS) and by the US Generally Accepted Accounting Principles (US GAAP).

Read more about Foreign Exchange Hedge:  Foreign Exchange Risk, Hedge, Do Companies Hedge?

Famous quotes containing the words foreign, exchange and/or hedge:

    If the dignity as well as the prestige and influence of the United States are not to be wholly sacrificed, we must protect those who, in foreign ports, display the flag or wear the colors of this Government against insult, brutality, and death, inflicted in resentment of the acts of their Government, and not for any fault of their own.
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    I live in my house as I live inside my skin: I know more beautiful, more ample, more sturdy and more picturesque skins: but it would seem to me unnatural to exchange them for mine.
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    There’s such divinity doth hedge a king
    That treason can but peep to what it would,
    Acts little of his will.
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