Discuss on Advantages of Hedge Accounting

Prime objective of this article is to Discuss on Advantages of Hedge Accounting. Here explain Hedge Accounting in financial perspective. Hedge accounting identifies the process of hedging, which reduces or controls risk related to certain financial risks. This is typically done through a position in a future market be the complete opposite of the current one so that you can reduce or limit the amount risk of this particular changes in price. There are two types of hedging you ought to know of when dealing together with hedge accounting: Long Hedge and Short Hedge.