What are accounting challenge involved with using derivative

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"We use derivative instruments to manage risks related to foreign currencies, equity prices, interest rates, and credit; to enhance investment returns; and to facilitate portfolio diversification. Our objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible.

Our derivative programs include strategies that both qualify and do not qualify for hedge accounting treatment."

Problem 1: What are the accounting challenges involved with using derivatives to mitigate foreign currency risk?

Reference no: EM132636763

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