RT Journal Article SR Electronic T1 A Guide for Hedging FX Risk of Anticipated Transactions JF Special Issues FD Institutional Investor Journals SP 65 OP 71 VO 2001 IS 1 A1 Brian L. May A1 Steven J. Walter YR 2001 UL https://pm-research.com/content/2001/1/65.abstract AB One benefit afforded by Statement 133 is that currency forwards now qualify for hedge accounting when used to hedge the foreign-exchange risk of forecasted or anticipated sale and purchase transactions. Prior to FAS 133, only purchased options having little (if any) intrinsic value qualified for hedge accounting. Although the additional flexibility is welcome, it confronts treasurers with more numerous and complex decisions. When is hedging beneficial? Which accounting model (cash flow or fair value) is optimal in each situation? Should time value be included or excluded when assessing hedge effectiveness? This article offers guidance to treasurers by exploring these issues and the pros and cons of each alternative.