Many firms use derivative instruments to hedge exposure to changes in the fair value an asset or liability or to hedge exposure to variability in expected future cash flows.As an analyst examining the financial reports of a company that uses derivative instruments to hedge,what questions should be asked when thinking about derivatives and accounting quality?

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The Answer of Many firms use derivative instruments to hedge exposure to changes in the fair value an asset or liability or to hedge exposure to variability in expected future cash flows.As an analyst examining the financial reports of a company that uses derivative instruments to hedge,what questions should be asked when thinking about derivatives and accounting quality?

Many Firms Use Derivative Instruments to Hedge Exposure to Changes