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Two cylinders are connected by a small tube which has a needle valve in the middle. One cylinder contains 4He gas, and the other cylinder contains CO2 gas. The gases are at the same temperature, pressure and volume. The lids that seal the gases in are free to move up or down. When the valve is opened, what happens to the volume in each cylinder?
Hedge Accounting
A method of accounting where entries for the ownership of a security and the opposing hedge are treated as one, to show a more accurate financial position.
Hedging Instrument
Any financial derivative or other contract used to offset the risk of changes in the value of an asset, liability, or future transaction.
Hedged Item
An asset, liability, firm commitment, or anticipated transaction identified by an entity to manage risks through hedging activities.
Cash Flow Hedge
A form of hedge accounting that aims to offset exposures to variability in cash flows, attributable to a particular risk associated with a recognized asset or liability.
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