Unformatted text preview: investments are recorded at cost which approximates fair value. (c) How does P&G use derivative financial instruments? a. As outlined in Note 6 P&G is affected by market risks such as: i. Credit risks ii. Fluctuations in interest rates iii. Foreign currency exchange rates b. To manage the above risks- P&G analyzes exposures on a consolidated basis with a use of logical exposure netting and correlation. For other exposures P&G utilizies financial transactions that follows their policies and practices. P&G does not hold or issue derivative financial instruments for speculative trading uses....
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- Interest Rates, Financial instrument, derivative financial instruments, $202,000,000