Hedge accounting

Hedging is an enterprise to avoid commodity price risk , foreign exchange risk, interest rate risk, equity price risk, credit risk, the aid for one or more hedging instruments (such as commodity futures contracts), the use of hedging instruments fair value or cash flow, offset quilt security projects (such as material procurement, finished goods or finished goods) or all changes in fair value or cash flow section. Hedging itself does not generate revenue, but by hedging tools to ensure project risks were hedged in whole or in part offset .