Hi there,
I'm doing a little research on US exchange listed companies use of
derivatives (commodity and currency for the most) to hedge prices and
investments.
If I understand it right, most US companies follow US GAAP?! And by
following this standard you have to list what derivatives you use and
the loss gain on these. However, I'm also very interested in knowing
the notional amount of these derivatives, since the gain/loss number
itself does not say anything about how big their hedge was, unless you
know the exact change in the underlying currency/commodity.
Take Intel Corporation as an example,
http://download.intel.com/intel/annualreports/AR_2004.pdf
, they say
they hedge foreign investments through currency forwards, however,
with my knowledge it is hard to say how much they hedge.
I really appreciate any comments and thought about this.
Sincerely
Simen
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