Derivatives on the balance sheet
Forwards, swaps and options carried at fair value: their revaluation lands either in profit or in equity.
How to read the number
Even when a trade was struck purely to hedge a risk, revaluing it makes reported profit choppier than the business behind it.
When the metric lies
The result on a derivative is on paper until settlement. An exporter's loss on a forward may sit next to a gain in revenue that this line does not show.
Also known as: derivative instruments