Tuesday, February 27, 2007

derivatives and accounting

no big story.... but it shows you that when ge has "material weakness" in the accounting of derivatives and hedging positions that the whole derivatives issue is even bigger most thought. just think of the counterpart risk when hedge funds are involved.......

nicht weiter der rede wird, oder doch? zeigt wunderbar das wenn selbst ge massive propleme hat derivate und hedginginstrumente richtig zu verbuchen das die derivateproblematik wohl doch schlimmer als von den meisten erwartet ist. man braucht da nur an die problematik denken wenn hedge fonds der gegenpart der position sind.....

thanks to http://www.247wallst.com/

We identified the following material weakness in our internal control over financial reporting - we did not have adequately designed procedures to designate each hedged commercial paper transaction with the specificity required by Statement of Financial Accounting Standards 133, Accounting for Derivative Instruments and Hedging Activities, as amended.

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