Also, what is to prevent a company from hedging that 5% they are forced to carry using some other derivative instrument?
From the economist.com
Whilst the activity surrounding these contracts involves the physical delivery of gas, the contracts fall within the scope of IAS 39 and meet the definition of a derivative instrument.
From the hemscott.com
Any gain or loss relating to an ineffective hedge or a derivative financial instrument that does not qualify for hedge accounting is immediately recognised in the income statement.
From the hemscott.com
A stock derivative is any financial instrument which has a value that is dependent on the price of the underlying stock.
From the en.wikipedia.org
It is an instrument that relates to money, a derivative for investment and now obviously for speculation.
From the economist.com
In Shiller's scenario, you would be able to go to your broker and buy a new type of financial instrument, perhaps a derivative that is inversely related to a regional home-price index.
From the newsweek.com
The methods of recognising the resulting change in fair value is dependent on whether the derivative is designed as a hedging instrument.
From the hemscott.com
The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
From the hemscott.com
The method of recognising the resulting gain or loss depends on whether or not the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged.