Tax and Accounting for Derivatives: Time for Reconciliation

Research Report

Tax and Accounting for Derivatives: Time for Reconciliation

August 9, 1999

Abstract

This article introduced FAS 133, which was a new accounting standard for derivatives and hedges—and then compared the tax rules applicable to these instruments. It suggested the two sets of rules be reconciled. That is, derivatives be marked-to-market for tax purposes, as they are for financial reporting.

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