Hedge Accounting – Making the CFO Happy

The Trading Floor with David Axtell · Apr 14, 2026 · 13m

Your hedging programme works perfectly. The economics are flawless. Then five million dollars appears as a loss in your quarterly earnings — and nobody told the CFO.Episode 12 tackles the topic most treasury professionals avoid: hedge accounting. The accounting frameworks that determine whether your derivative gains and losses end up in the right place on your financial statements. David Axtell explains why getting this wrong can create exactly the earnings volatility your hedging programme was supposed to prevent.The core problem is timing. Without hedge accounting, a forward contract's fair…