Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The FSA (Statement of Financial Accounting Standards) No. 133: Accounting for Derivatives Instruments and Hedging Activities, as amended, requires US companies to report all derivatives

image text in transcribed
The FSA (Statement of Financial Accounting Standards) No. 133: Accounting for Derivatives Instruments and Hedging Activities," as amended, requires US companies to report all derivatives instruments on the balance sheet for designation and effectiveness of hedging relationships. Download form 10-K filled by Proctor and Gamble (P&G) from the company's website or the US Securities and Exchange Commission's website for the past 5 years. (P&G is a multinational that owns some of the world's best known consumer products brands. (a) What are the different kinds of risks to which P&G is exposed? (b) How does P&G manage its risk? Identify and state the use of some derivatives in this regard. (c) Name some techniques that P&G employees for risk management. (d) Does P&G grant employee stock options? If so, briefly discuss this program. What valuation model does the company use for valuing employee stock options? (e) Has anything dramatically changed in their report for the past five years? The FSA (Statement of Financial Accounting Standards) No. 133: Accounting for Derivatives Instruments and Hedging Activities," as amended, requires US companies to report all derivatives instruments on the balance sheet for designation and effectiveness of hedging relationships. Download form 10-K filled by Proctor and Gamble (P&G) from the company's website or the US Securities and Exchange Commission's website for the past 5 years. (P&G is a multinational that owns some of the world's best known consumer products brands. (a) What are the different kinds of risks to which P&G is exposed? (b) How does P&G manage its risk? Identify and state the use of some derivatives in this regard. (c) Name some techniques that P&G employees for risk management. (d) Does P&G grant employee stock options? If so, briefly discuss this program. What valuation model does the company use for valuing employee stock options? (e) Has anything dramatically changed in their report for the past five years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Undergraduates

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

1st Edition

1618531123, 9781618531124

More Books

Students also viewed these Accounting questions

Question

How is the education level required for a position established?

Answered: 1 week ago

Question

Why is a job analysis important?

Answered: 1 week ago