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Cash-Flow Hedge
A form of hedge accounting that protects against the variability in cash flows of a recognized asset or liability, or a forecasted transaction.
Other Comprehensive Income
Gains and losses that are not included in net income, but affect shareholders' equity, including items like unrealized gains or losses on foreign currency translations and on investment securities.
Forward Contract
A customized financial agreement between two parties to buy or sell an asset at a specified price on a future date, often used for hedging risks.
Natural Hedge
A risk management technique where a business reduces its exposure to fluctuations, typically in currency or interest rates, through its normal operations.
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