Derivatives, hedging and comprehensive income

Hedge accounting is on the current agendas of many leading standard-setting organizations around the world. Because derivative financial instruments often are used in hedge activities, issues about hedge accounting usually are considered in tandem with issues about accounting for derivatives. Issues about derivatives and hedge accounting are closely related to the reporting or presentation of what might be termed financial performance - all changes in equity during a period except for those resulting from transactions with owners in their capacity as owners. The FASB's projects on derivatives and hedging activities are discussed.