Abstract
The comparability of hedge accounting disclosures between companies increases the informational value of financial statements. In order to eliminate inconsistency in the reporting of hedging activities, the FASB issued SFAS No. 133, which was intended to provide comprehensive guidance for all derivatives reporting and disclosure. The fact that SFAS No. 133 allows some hedging transactions to be designated as either a fair value hedge or a cash flow hedge might suggest a lack of comparability for similar transactions. This paper identified several of these transactions and provides the comparative accounting. Even though fair value and cash flow hedges are accounted for differently, there was little difference in their net effect on reported earnings while other comprehensive income did fluctuate somewhat for cash flow hedges.
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