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,
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, they saythey 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