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Hedge accounting
3.2 Examples of risk disclosures
Credit risk Liquidity risk Market risk
the risk that one the risk that an the risk that the
party to a financial entity will fair value of a
instrument will encounter financial
cause a financial difficulty in instrument will
loss for the other meeting fluctuate due to
party by failing to obligations changes in market
discharge an associated with prices.
obligation financial liabilities.
Three types of market
Examples Examples risk: currency risk,
interest rate risk and
Details of any A maturity analysis for other price risks.
investments, for financial liabilities that
example money shows the maturity Examples
market instruments dates for all financial
such as certificates of liabilities. An analysis of the
deposit (CDs) and sensitivity of financial
commercial paper. An explanation of how results to reasonably
liquidity risk is probable market price
For each material managed. changes (e.g. what
investment, would the revenue
information regarding figure have been for a
the credit rating of the company with USA
counterparty would exposure if the USD
have to be disclosed. had been worth 5%
less in the year?)
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