Accounting for Derivatives For a brief overview of how firms are required to account for derivatives positions, please see the source at the link below. Please describe what is meant by (i) a fair value hedge, and (ii) a cash flow hedge, and for each briefly describe their accounting treatment under FAS 133. You are welcome to consult other sources as well about FAS 133. You may limit your answer to 1-2 pages. http://www.cmegroup.com/education/files/fincad-hedge-accounting-kpmg- whitepaper.pdf