Hedge Accounting, between Past and Future

Author:Alexandrina Teodora BORFOAIA, Ph. D Student; Adriana Claudiţa GHIMIŞ, Ph. D Student

JEL:M41

DOI:

Keywords:subprime crisis, financial instruments, fair value, hedge accounting

Abstract:
Once the subprime crisis started in 2007, there have been new developments on financial derivatives worldwide, reconsidering their role in financial markets. Thus, in the context of the turmoil on financial markets, some financial instruments could not be traded or markets have become inactive. These exceptional circumstances were required to change the way companies manage these financial instruments. The first measures aimed, in a primary, the revision of international accounting standards regarding hedge accounting. Therefore, new models have been developed for recognizing and measuring financial instruments in the financial statements. The stated aim of these measures is to assist companies in their quest to meet the new challenges brought by the crisis in financial markets.\r\n

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