Hedge accounting has never been for the faint of heart, not when treasuries must deal with the increasingly confusing framework of FAS 133. Not surprisingly, almost half of participating executives in Treasury & Risk‘s 2007 Financial Risk Management Survey report that while they continue to do hedge accounting, they either limit or have cut out entirely use of the now infamous shortcut option available under the accounting rule. But despite the controversy, companies continue to use derivatives at about the same rate, primarily to hedge transactions. The survey is based on the responses of 190 senior finance executives, taken between Feb. 14 and Feb. 21 2007.

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