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  CME ClearPort Product Slate Block Trades Grains and Oilseeds (CBOT) Corn FUT | OPT Mini-Sized Corn FUT Corn Calendar Spread Options OPT Distillers Dried Grain FUT Wheat FUT | OPT MGEX-CBOT Wheat Spread Options OPT Mini-Sized Wheat FUT Wheat Calendar Spread Options OPT Soybeans FUT | OPT Mini-Sized Soybeans FUT Soybean Calendar Spread Options OPT Soybean Meal FUT | OPT Soybean Meal Calendar Spread Options OPT Soybean Oil FUT | OPT Soybean Oil Calendar Spread Options OPT Soybean Crush FUT | OPT Oats FUT | OPT Rough Rice FUT | OPT Wheat-Corn Intercommodity Spread Options OPT Soybean - Corn Price Ratio Option OPT Grains and Oilseeds (CME) Crude Palm Oil FUT	Livestock (CME) Live Cattle FUT | OPT Live Cattle Calendar Spread Options OPT Lean Hogs FUT | OPT Lean Hogs Calendar Spread Options OPT Feeder Cattle FUT | OPT Dairy (CME) Class III Milk FUT | OPT Class IV Milk FUT | OPT International Skimmed Milk Powder FUT | OPT Nonfat Dry Milk FUT | OPT Dry Whey FUT | OPT Cash-Settled Butter FUT | OPT Butter Spot Call Cheese FUT | OPT Cheese Spot Call Blocks Cheese Spot Call Barrels Nonfat Dry Milk Spot Call Grade Extra Nonfat Dry Milk Spot Call Grade A	Forest (CME) Random Length Lumber FUT | OPT Softwood Pulp FUT | OPT Commodity Indexes (CME) DJ-UBS Commodity Index FUT S&P-GSCI FUT | OPT S&P-GSCI Excess Return Index FUT Softs (NYMEX) Cocoa FUT Coffee FUT Cotton FUT No. 11 Sugar FUT

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  CME ClearPort Product Slate Block Trades Trade at Marker Prices Crude Oil (NYMEX) CL Light Sweet Crude Oil (WTI) FUT | OPT WS Crude Oil - Financial FUT NBZ Brent 25-Day (Platts) FUT | OPT WCE Western Canadian Select (WCS) Crude Oil FUT CVF Crude Oil Volatility Index (VIX) FUT | OPT QM E-mini Light Sweet Crude Oil (WTI) - Financial FUT BZ Brent Crude Oil Last-day - Financial FUT | OPT RE Russian Export Blend Crude Oil (REBCO) FUT R2 Russian Export Blend Crude Oil (REBCO) - Financial FUT MB Gulf Coast Sour Crude Oil FUT A0 Argus Sour Crude Index Financial FUT BB Brent Crude Oil Penultimate Financial FUT | OPT Ethanol (CBOT) EH CBOT Ethanol FUT | OPT Ethanol (NYMEX) QEN NYMEX Ethanol FUT	Natural Gas (NYMEX) NG Natural Gas (Henry Hub) FUT | OPT MNG Henry Hub Natural Gas Last Day Physically-Delivered FUT HH Henry Hub Natural Gas Last-Day - Financial FUT HP Henry Hub Natural Gas Penultimate - Financial FUT QG E-mini Natural Gas (Henry Hub) - Financial FUT NP Henry Hub Natural Gas Penultimate Swap - Financial FUT NN Henry Hub Natural Gas Swap - Financial FUT PPB Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas BALMO Futures FUT PPD Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas Daily/Weekend Futures FUT Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas Monthly Basis Futures FUT PPM Pine Prairie Energy Center (PPEC) Physically Delivered Natural Gas Monthly Futures FUT Electricity (NYMEX) L1 PJM Western Hub Peak Calendar Month Real Time LMP Swap Future FUT 4SN PJM Western Hub 50 MW Peak Calendar Month Real Time LMP Swap Future FUT Z9 PJM AEP Dayton Hub 5MW Peak Calendar-Month Real-Time LMP Swap Futures FUT U6 ISO New England Internal Hub 5 MW Peak Calendar-Month Day-Ahead LMP Swap Futures FUT T3 NYISO Zone G 5 MW Peak Calendar-Month Day-Ahead LBMP Swap Futures FUT K3 NYISO Zone A 5 MW Peak Calendar-Month Day-Ahead LBMP Swap Futures FUT H3 Midwest ISO Cinergy Hub 5 MW Peak Calendar-Month Real-Time Swap Futures FUT B3 PJM Northern Illinois Hub 5 MW Peak Calendar-Month Real-Time LMP Swap Futures FUT	Refined Products (NYMEX) HO Heating Oil FUT | OPT BH Heating Oil - Financial FUT ULS NY ULSD - Financial FUT QH E-mini Heating Oil - Financial FUT RB RBOB Gasoline FUT | OPT RT RBOB Gasoline - Financial FUT QU E-mini RBOB Gasoline - Financial FUT 7F European Gasoil (ICE) - Financial FUT LR Gulf Coast Gasoline FUT LU Gulf Coast Harbor Ultra Low Sulfer Diesel (ULSD) FUT LH New York Harbor Ultra Low Sulfur Diesel (ULSD) FUT Coal (NYMEX) QL Central Appalachian Coal (CAPP) FUT Other UX Uranium FUT

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  Block Trades S&P/Case-Shiller Home Price Index (CME) FUT | OPT

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  Block Trades Temperature (CME) U.S. Cooling Monthly FUT | OPT U.S. Cooling Seasonal FUT | OPT U.S. Heating Monthly FUT | OPT U.S. Heating Seasonal FUT | OPT U.S. Weekly Weather FUT | OPT Canada CAT Monthly FUT | OPT Canada CAT Seasonal FUT | OPT Canada Cooling Monthly FUT | OPT Canada Cooling Seasonal FUT | OPT Canada Heating Monthly FUT | OPT Canada Heating Seasonal FUT | OPT Europe CAT Monthly FUT | OPT Europe CAT Seasonal FUT | OPT Europe Heating Monthly FUT | OPT Europe Heating Seasonal FUT | OPT Asia-Pacific Monthly FUT | OPT Asia-Pacific Seasonal FUT | OPT Australia Cooling Monthly FUT | OPT Australia Cooling Seasonal FUT | OPT Australia Heating Monthly FUT | OPT Australia Heating Seasonal FUT | OPT	Hurricanes (CME) Hurricane FUT | OPT Hurricane Seasonal FUT | OPT Hurricane Seasonal Maximum FUT | OPT Frost (CME) Frost Monthly FUT | OPT Frost Seasonal FUT | OPT Snowfall (CME) Snowfall Monthly FUT | OPT Snowfall Seasonal FUT | OPT Rainfall (CME) Rainfall Monthly FUT | OPT Rainfall Seasonal FUT | OPT

Accounting Basics for Derivatives and Hedge Accounting

In the regular course of operations, organizations are exposed to market risk such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility. Derivative instruments are often used to hedge those risks.

This is the third paper in an ongoing series that outlines the principles of hedge accounting under the current and expected International and U.S. accounting standards, including the practical challenges typically faced by organizations.