Recent events in the business world have focused attention on the importance of high quality financial reporting. Of particular interest is where the collapse of prominent companies such as Baring Plc. was due to the company's involvement with derivative instruments. In Australia, some derivative instruments are not recognised in the balance sheet. However, the Australian accounting standard AASB 1033 Presentation and Disclosure of Financial Instruments requires extensive disclosures to overcome the lack of guidance with regard to the recognition and measurement. Therefore, AASB 1033 may be regarded as a high quality disclosure standard. This thesis investigates the transparency or information quality of derivative disclosures of Australian firms in the extractive industries using 1998 to 2001 financial reports. The extractive industries play a major role in the Australian economy, where they generated exports worth more than A$30billion in 2000 to 2002 (Department of Foreign Affairs and Trade, 2003a and 2003b). Further, firms in the extractive industries extensively use derivative instruments for hedging purposes (Berkman, Bradbury, Hancock and Innes, 1997). The objective of this study is, first, to examine the relationship between the transparency or disclosure quality of derivative information and firm characteristics. Second, this study investigates the value relevance of derivative disclosures in particularly hedge information, net fair value information and risk information. Quality is measured based on a disclosure index developed from AASB 1033 Presentation and Disclosure of Financial Instruments. A finding of concern is that the majority of firms in this study provide less than complete information and therefore enforcement power is required to ensure compliance (Kothari, 2000) Prior studies have related disclosure quality of accounting information with firm characteristics but no attempt has been made to relate those characteristics with the disclosure quality of derivative instruments. The current study contributes to the literature by examining the relationship between firm characteristics and the quality of derivative disclosures. Firm characteristics investigated are size, profitability, price-earnings ratio, market-to-book ratio, research and development activity, auditor, debt-to-equity ratio and type of extractive firm. This study finds that the variables, firm size, price-earnings and debt-to-equity ratios are associated with the disclosure quality of derivative information. To a lesser extent, the variables, market-to-book ratio and profitability, are also associated with disclosure quality. High disclosure quality has been argued to lead to a reduction in the cost of debt (Sengupta, 1998) and equity (Botosan, 1997), resulting in higher security prices (Miller and Bahnson, 2002). The results of this study indicate that high quality derivative information, as represented by the disclosure index, is value relevant. Market participants do consider hedge information and risk information components as important for decision-making. However, examining the specific information disclosed in the financial statements indicate that some of the disclosed information such as the unrealised gain or loss on financial assets and liabilities and off-balance sheet derivative financial instruments are not significant. These results contribute to the value relevance literature as this study focuses on the extractive industries which have been neglected in the literature. This study provides important information for standard setters and regulators for future directions in developing accounting standards and is particularly relevant for the impending adoption of International Accounting Standards.

Purpose: The purpose of the study was to investigate how companies are affected by currency hedging in international trade. One purpose was to investigate and identify the type of currency risks companies are most exposed to and what currency hedging methods are used to handle these. Methodology: To answer the study's question, research was conducted by using a qualitative data method and a content analysis method. Theoretical framework: The focus has been on these theories; Modigliani and Miller theory, currency risk management and previous studies. Result: The result of the study consists of a presentation of the processed data as underlies the analysis being carried out. Conclusion: The study found that the currency exposures which companies are primarily exposed to in international trade are transaction and translation exposures. Of the eight companies investigated in the study, seven of them focused on transaction exposure. The study also indicates that the most commonly used derivative instruments used by companies are futures, options and swaps, where futures due to its flexibility came first, options on the second place and swaps on the third place. The most important and used purchase currencies that the companies deal with are Euro, British pound and US-dollars. Whether it is profitable for companies to hedge their currency risks or not, this study found that currency hedging is profitable for companies. / Syfte: Syftet med studien var att undersöka hur företagen påverkas av valutasäkring vid internationell handel. Ett delsyfte var att undersöka och kartlägga vilken typ av valutarisk företagen är mest exponerade för samt vilka valutasäkringsmetoder som används vid hantering av dessa. Metod: För att besvara studiens frågeställning genomfördes forskningen genom en kvalitativ metod och en innehållsanalysmetod. Teoretiskt perspektiv: Fokus har legat på dessa teorier; Modigliani & Millers teori, valutariskhantering och tidigare studier. Empiri: Empirin innefattar den bearbetade datan som har samlats in från respektive företag samt är grunden för studiens analys. Slutsats: Studien kom fram till att den valutaexponering som företagen främst utsätts för vid internationell handel var transaktions-och omräkningsexponering. Av de åtta företag som har undersökts i studien visade sig att sju av dessa fokuserade på transaktionsexponering. Studien visade även att de vanligaste derivatinstrumenten som används av företagen var terminer, optioner och swappar. Terminer på grund av dess flexibilitet kom på första plats, optioner på andra plats och swappar på tredje plats. De viktigaste och mest använda inköpsvalutorna som företagen handlar med var euro, brittiskt pund och amerikanska dollar. Huruvida det är lönsamt för företagen att valutasäkra eller inte, tydde denna studies fynd på att valutasäkring är lönsamt för företag.

This dissertation evaluates development of exchange rates and its specific effects on STAP company a.s. The aim of this paper is to present the events that have had influence on the development of the exchange rate between Euro and Czech Crown and precautionary measures taken by STAP a.s. to prevent related risks. The first part comprises a summary of events that had a significant impact on the exchange rate development; the risks created by these events and methods devised to prevent these risks. The second part evaluates the specific financial derivatives used by STAP a.s. and their impact. Finally the recommendation is made for the future more effective usage of the financial instruments.

Made available in DSpace on 2016-03-15T19:32:23Z (GMT). No. of bitstreams: 1 Alberto Ricardo da Silva.pdf: 576493 bytes, checksum: 0f1522c133d009b9c63b1743e9ae3f43 (MD5) Previous issue date: 2010-08-08 / Fundo Mackenzie de Pesquisa / Emitted in 2008 CPC 14 (Deliberation CVM nº 566/08), together with for Instrução CVM nº 475/08, they brought new practices in the that tells respect to the record and measuring of the used financial instruments. The present study has as goal analyze measuring effects and implementation current financial instruments record of Deliberação CVM nº. 566/08 and rule CVM nº. 475/08 in the result and in the patrimony liquidate of the Brazilian opened companies not-financiers. The investigation of the descriptive kind used of technical standardized of data collections concerning the financial not-derivative and derivative instruments, because it sought itself to analyze the relative accounting demonstrations to the exercises ended in 2007, before the new rules, and ended in 2008, year in which the new rules proceeded being demanded. The sample comprehended the 100 larger Brazilian opened companies not-financiers with active larger volume in 31/12/2008, and to ends of analyzes the final sample comprehended 68 companies for own informaction of instruments utilization financial not-derivative and derivative in set. In the data treatment were analyzed the qualitative, relative to the kinds identification of financial and quantitative instruments, relative to the measuring of the instruments effects in the result and in the companies' equity.Of the research results stands out: (i) In the effects in equity liquidate twelve companies evidenced financial instruments in 2008 against just two in 2007, note itself an evolution considerable because measuring in 2008 totalized R$ 121 million won liquidies against R$ 16 million net losses in 2007, however the one of if you stand out that of the final sample fiftysix companies did not evidence any information; (II) in the effects in the result were evidenced the effects of the financial instruments in forty-four companies in 2008 against forty in 2007, despite a minimum evolution in the records note itself a significant evolution in measuring that in spite of having been affected by results excepecionais of the crisis of 2008 were significant, having in 2008 R$ 1,0 billion loss and against 196 corns in 2007. It noticed in the effects analysis, of the records and measuring with base in the new rules, important effects in the patrimony liquidate and in the result of searched companies what demonstrates a partial evolution, since fifty-six companies did not announce any information in patrimony liquidate and twenty-four in the result. / Emitido em 2008 CPC 14 (Deliberação CVM nº 566/08), juntamente com a Instrução CVM nº 475/08, trouxeram novas práticas no que diz respeito ao registro e mensuração dos instrumentos financeiros utilizados. O presente estudo tem como objetivo analisar os efeitos da mensuração e registro dos instrumentos financeiros decorrentes da implementação da Deliberação CVM nº. 566/08 e Instrução CVM nº. 475/08 no resultado e no patrimônio liquido das companhias abertas brasileiras não-financeiras. A investigação do tipo descritiva utilizou de técnicas padronizadas de coletas de dados acerca dos instrumentos financeiros não-derivativos e derivativos, pois buscou-se analisar as demonstrações contábeis relativas aos exercícios findos em 2007, antes das novas normas, e findos em 2008, ano em que as novas normas passaram a serem exigidas. A amostra compreendeu as 100 maiores companhias abertas brasileiras não-financeiras com maior volume de ativos em 31/12/2008,sendo que para fins de análise a amostra final compreendeu 68 companhias por possuirem evidências de utilização de intrumentos financeiros não-derivativos e derivativos em conjunto. No tratamento dos dados foram analisados os qualitativos, relativos à identificação dos tipos de instrumentos financeiros e quantitativos, relativos à mensuração dos efeitos dos instrumentos no resultado e no patrimônio líquido das companhias. Dos resultados da pesquisa destaca-se: (i) nos efeitos no patrimonio liquido doze companhias evidenciaram instrumentos financeiros em 2008 contra apenas duas em 2007, nota-se uma evolução consideravel pois as mensurações em 2008 totalizaram R$ 121 milhões de ganhos liquidos contra R$ 16 milhões de prejuizos liquidos em 2007, porém a de se destacar que da amostra final cinquenta e seis companhias não evidenciaram qualquer informação; (ii) nos efeitos no resultado foram evidenciados os efeitos dos instrumentos financeiros em quarenta e quatro companhias em 2008 contra quarenta em 2007, apesar de uma minima evolução nos registros nota-se uma significativa evolução nas mensurações que apesar de terem sido afetados por resultados excepecionais da crise de 2008 foram significativas, tendo em 2008 R$ 1,0 bilhão de prejuizos contra 196 milhoes em 2007. Notou-se na análise dos efeitos, dos registros e mensurações com base nas novas normas, efeitos relevantes no patrimônio liquido e no resultado das companhias pesquisadas o que demonstra uma evolução parcial, visto que cinquenta e seis companhias não divulgaram qualquer informação no patrimonio liquido e vinte e quatro no resultado.

Corn production is scattered geographically over various continents, but most of it is grown in the United States. As such, the world price of corn futures contracts is largely dominated by North American corn prices as traded on the Chicago Board of Trade. In recent years, this market has been characterised by an increase in price volatility and magnitude of price movement as a result of decreasing stock levels. The development and implementation of an effective and successful derivative price risk management strategy based on the Chicago Board of Trade corn futures contract will therefore be of inestimable value to market stakeholders worldwide. The research focused on the efficient market hypothesis and the possibility of contesting this phenomenon through an application of a derivative price risk management methodology. The methodology is based on a combination of an analysis of market trends and technical oscillators with the objective of generating returns superior to that of a market benchmark. The study found that market participants are currently unable to exploit price movement in a manner which results in returns that contest the notion of efficient markets. The methodology proposed, however, does allow the user to consistently achieve returns superior to that of a predetermined market benchmark. The benchmark price for the purposes of this study was the average price offered by the market over the contract lifetime, and such, the efficient market hypothesis was successfully contested. / Business Management / D. Com. (Business Management)

Corn production is scattered geographically over various continents, but most of it is grown in the United States. As such, the world price of corn futures contracts is largely dominated by North American corn prices as traded on the Chicago Board of Trade. In recent years, this market has been characterised by an increase in price volatility and magnitude of price movement as a result of decreasing stock levels. The development and implementation of an effective and successful derivative price risk management strategy based on the Chicago Board of Trade corn futures contract will therefore be of inestimable value to market stakeholders worldwide. The research focused on the efficient market hypothesis and the possibility of contesting this phenomenon through an application of a derivative price risk management methodology. The methodology is based on a combination of an analysis of market trends and technical oscillators with the objective of generating returns superior to that of a market benchmark. The study found that market participants are currently unable to exploit price movement in a manner which results in returns that contest the notion of efficient markets. The methodology proposed, however, does allow the user to consistently achieve returns superior to that of a predetermined market benchmark. The benchmark price for the purposes of this study was the average price offered by the market over the contract lifetime, and such, the efficient market hypothesis was successfully contested. / Business Management / D. Com. (Business Management)

The agricultural sector plays an important role in the South African economy through job creation and earning foreign exchange. The role of agricultural co-operatives increased substantially over the last few decades. The research focuses firstly on the identification of derivative instruments in the market and their applicability to mitigate financial risks co-operatives experience. Secondly, research is conducted about the extent to which co-operatives use these derivatives to hedge financial risks. The research shows that most co-operatives are exposed to financial risks through different activities. It is, however, evident that although the derivative instruments are available, not all co-operatives make use of these instruments. Recommendations for further research include the development of a risk management framework and determining the different economic factors that have an influence on the use of derivatives by South African agricultural co-operatives. / Business Management / M.Comm.

The agricultural sector plays an important role in the South African economy through job creation and earning foreign exchange. The role of agricultural co-operatives increased substantially over the last few decades. The research focuses firstly on the identification of derivative instruments in the market and their applicability to mitigate financial risks co-operatives experience. Secondly, research is conducted about the extent to which co-operatives use these derivatives to hedge financial risks. The research shows that most co-operatives are exposed to financial risks through different activities. It is, however, evident that although the derivative instruments are available, not all co-operatives make use of these instruments. Recommendations for further research include the development of a risk management framework and determining the different economic factors that have an influence on the use of derivatives by South African agricultural co-operatives. / Business Management / M.Comm.