Accounting for Derivatives: Hedging or Trading

Abstract:- Paper performs an analysis of the Czech and Romanian derivatives market through a deductive approach, starting from the macroeconomic picture of emergent capital markets of Central and Eastern Europe, and then moving to the specific case of Czech Republic and Romania. Findings reveal potential sources of information asymmetry which might put the informational advantage in the hands of some parties involved in derivatives trading. The very low level of information reported on derivatives operations might be the signal of an alarming situation concerning the characteristics of accounting information that already had its way through the current crisis