Study examines derivatives use for hedging

01/16/2013 | Accounting Today

CFA Institute has released a study that looks into the use of derivatives for hedging, finding that greater disclosure is needed for investors to understand the risk exposure of companies in which they invest. "Given the widespread use of derivatives, the broad point made from our analysis is that these instruments are prone to leaving investors with a lack of understanding of associated risks and unable to anticipate potential losses if they are not disclosed properly," said Vincent Papa, director of financial-reporting policy.

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