Industry WIKI

A foreign exchange hedge (also called a FOREX hedge) is a method used by companies to eliminate or "hedge" their foreign exchange risk resulting from transactions in foreign currencies (see foreign exchange derivative). This is done using either the cash flow hedge or the fair value method. The accounting rules for this are addressed by both the International Financial Reporting Standard

The accounting term Hedge relationship relates to the treatment of an insurance contract for risk mitigation on an underlying asset, and the set of tests for the valuation of this insurer/insuree contract.

== Overview and History ==

The International Accounting Standards Board (IASB) is the independent accounting standard-setting body of the IFRS Foundation.