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FAS 133: routine or ruinous?

The Association of Finance Professionals, a 14,000-strong group of corporate treasurers and finance officials, gave Risk an exclusive look at its just-completed member survey on the implementation and consequences of FAS 133. Two years after the controversial accounting regulation came into effect, how are corporations coping?

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Two years ago, many predicted that the US Financial Accounting Standards Board’s (FASB) much-criticised derivatives accounting rule – FAS 133 – would force companies to slash their use of derivatives. But a survey of 175 corporates with revenues of between $1 billion and $5 billion, released this month, shows that most have not done so. However, corporate use of exotic hedging tools – the

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