I recall a discussion in the mid-1990s as though it were yesterday.A case was made that dynamic hedging meant that everything would work out in the end and hence should not be reflected to have either gains or losses in a given reporting period.

As a member of the Financial Accounting Standards Advisory Council for the Financial Accounting Standards Board, I suggested that that would mean no accountability on an interim basis for the performance of the hedge, which seemed to me analogous to not keeping the score by inning at a baseball game.

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