Hedge Effectiveness

We wrote two articles that described the best statistical approach to meeting the requirement of showing that a hedge is "highly effective". One is thorough and detailed, “Alternative Approaches To Testing Hedge Effectiveness Under SFAS 133,” Accounting Horizons 16 (June 2002), 94 – 108.

 

 

The other is more of a how-to guide, “Testing Hedge Effectiveness Under SFAS 133,” The CPA Journal LXXIII No. 4 (April 2003) 40 – 47.