Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Winkman777 who wrote (6340)	1/29/2002 6:37:16 PM
From: jim_p	Respond to of 206110

Winkman, The treatment of hedging is now recorded on the balance sheet. The estimated future gain/loss is booked on the balance sheet and is not run through the P&L. Mark to market accounting is were you lock up both the buy and sell side under contract and then recognize the entire profit on day one. If the profit is recognized there is nothing to record on the balance sheet. I'm not an expect in this area, but that's my understanding. "Therefore, in accordance with Staff Accounting Bulletin No. 101 and the Emerging Issues Task Force ("EITF") Issue No. 99-19, CES recognizes revenue on a "gross basis" Translation: We use mark to market accounting and record the entire profit on a back to back transaction on day one. Be careful, Jim