Foreign Exchange Risk  Many companies make annual reports available on their corporate web page, often under an Investors tab. Annual reports also can be accessed through the U.S. Securities and Excha

Foreign Exchange Risk 

Many companies make annual reports available on their corporate web page, often under an Investors tab. Annual reports also can be accessed through the U.S. Securities and Exchange Commission’s EDGAR system.

To find these reports, click the Filings tab toward the top right of the screen. From the drop-down menu, click Company Filings Search. Type in a company name in the Company Name search box. Then, search for 10-K in the Filing Type search box.

Access the most recent annual report for your favorite international company to complete the following requirements.

• Identify the location(s) in the annual report where the company provides disclosures related to its management of foreign exchange risk.
• Determine the types of hedging instruments the company uses and the types of hedges in which it engages.
• Determine the manner in which the company discloses the fact that its foreign exchange hedges are effective in offsetting gains and losses on the underlying items being hedged.