Once the price of the stock breaks through the identified areas of support or resistance, volatility quickly increases, and so does the opportunity for short-term traders to generate a profit.
Technical traders believe that a breakout above the resistance price means that stock price is increasing further, so the trader buys the stock.
So that’s completely different from fair value hedge accounting. But maybe it opens up your mind to logical thinking about hedges.
What I’m going to explain right now is my own logic of looking at this issue. Please, ask first: Basically, you can hedge a fixed item or a variable item.
The objective of this Statement is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements by establishing accounting and reporting standards that require: What Is the Scope of This Statement?
This Statement applies to all entities that prepare consolidated financial statements, except not-for-profit organizations, but will affect only those entities that have an outstanding noncontrolling interest in one or more subsidiaries or that deconsolidate a subsidiary.
How Will This Statement Improve Current Accounting Practice?
Before this Statement was issued, limited guidance existed for reporting noncontrolling interests.As a result, considerable diversity in practice existed.Consolidation is used in technical analysis to describe the movement of a stock's price within a well-defined pattern of trading levels.Not-for-profit organizations should continue to apply the guidance in Accounting Research Bulletin No.51, Consolidated Financial Statements, before the amendments made by this Statement, and any other applicable standards, until the Board issues interpretative guidance.