HomeDespre ECTAEventsPolitica editorialaTrimite un articolParteneri / link-uri utileArchiveAbonamentContact

ISSN 1841-8678   (print)
ISSN 1844-0029   (online)


Archive ECTAP

Note: for the period 1994-2003 the archive of the magazine will not be available online

Supplements ECTAP

If you cannot open the pdf file you need Adobe Reader.
download Adobe Reader

Creative Commons License

Theoretical and Applied Economics
No. 12 / 2013 (589)

Fair value hedging, between opportunity and necessity

Bucharest University of Economic Studies
Mihaela BOTEA
Bucharest University of Economic Studies
Daniela Livia TRAŞCĂ
Bucharest University of Economic Studies

Abstract. In the actual worldwide context the exposure of companies to various financial risks increased and the consequences are much worst than 10 years ago. That’s why hedging accounting has become a necessity. Derivative operations can be used to hedge: interest rate risks, foreign currency exchange rate risks, credit risks. Derivatives used to hedge these risks can be handled to cover fair value exposure, cash flow exposure and exposure to changes in the value of a net investment in a foreign operation. This paper proposes two models for fair value risk hedging using derivatives. Both examples are based on IAS 39, some of the most controversial accounting standards of the day. The proposed solutions can be used by the experts interested in applying hedging accounting in order to manage this particular type of risk and to limit the negative consequences of companies’ performances.

Keywords: hedge accounting; hedge effectiveness; fair value exposure; cash flow exposure; fair value hedge.

Download the full article:  


After the transition
Marin Dinu

Open acces




The Economicity. The Epistemic Landscape, Marin Dinu, 2016


ISSN 1841-8678 (ediția print) / ISSN 1844-0029 (ediția online)
© Copyright Asociația Generală a Economiștilor din România (AGER) / General Association of Economists From Romania  (GAER)
Redacția: 010702, București, Calea Griviței nr. 21, sector 1, E-mail:

© 2006-2020 AGER