Hedge Ineffectiveness and Credit Risk in Derivatives Transactions
First written in FY2020. 1 of 2 entries say "Restated". Latest entry: FY2021.
The whole theme swung hardest in 2019: 2 of 6 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2021RestatedAnnual report
「Our Group uses derivatives to hedge the foreign-exchange risk associated with foreign currencies and foreign-currency-denominated securities it holds. However, these transactions may fail to perform their intended role of managing risk. We also anticipate the possibility that a deterioration in credit ratings or other factors could reduce our ability to enter into derivative transactions.」
The risks of ineffective hedging and reduced transaction capacity due to a deterioration in credit ratings in connection with derivatives used for foreign-exchange hedging continue to be disclosed. - FY2020First statedAnnual report
「Our Group uses derivatives to hedge the foreign-exchange risk associated with foreign currencies and foreign-currency-denominated securities it holds. However, these transactions may fail to perform their intended role of managing risk. We also anticipate the possibility that a deterioration in credit ratings or other factors could reduce our ability to enter into derivative transactions.」
The risks that derivatives used for foreign-exchange hedging may not function sufficiently as hedges and that a deterioration in credit ratings could reduce our ability to enter into transactions are disclosed separately.