Commodity trading accounting treatment
Hedge accounting is an accountancy practice, the aim of which is to provide an offset to the mark-to-market movement of the derivative in the profit and loss account. There are two types of hedge recognized. For a fair value hedge, the offset is achieved either by marking-to-market an risks (for example interest rate risk, foreign exchange risk, commodity risk, etc.) These agribusinesses trade commodity derivatives on the South African Futures The accounting treatment of commodity derivatives was investigated by Trading Activity and Physical Asset Ownership for Leading Commodity This type of transaction receives different accounting treatment than a hedge of a