By reading the case of GLOBAL MARINE PARTNERS in 1998 by Professors Brandt R. Allen and Robert M. Conroy., what are the arguments/ problems of Accounting for Derivative Instruments and Hedging Activities ? Solutions/recommendations to arguments on the FASBs FAS 133 statements:

" The FASBs FAS 133 was issued in June 1998. A summary is attached as Exhibit 4. The July issue of the Journal ofAccounting reported the following: FASB said it built the statement on four pillars: Derivatives are assets and liabilities that should be reported, fair value is the most relevant measure, only assets and liabilities should be reported as such (gains and losses should not be reported as assets and liabilities), and special accounting should be limited to qualifying hedge transactions. According to the FASB, Gains or losses resulting from changes in the values of derivatives would be accounted for depending on the use of a derivative and whether it qualified for hedge accounting. Bobbin was particularly concerned about this statement because he could foresee purchases of additional VLCCs in the future. "