Losses From Hedging I have problem with costing treatment on Aluminum. We've been purchasing Aluminum ingot at LME price. However, some customers want to hedge to mitigate pricing exposure whereas some do not. For costing purpose, we are carrying-out average method to determine inventory value However, loss from hedging is actually incurred. I would like to ask members that should loss amount be treated as cost of sales or manufacturing cost? Your Thoughts? |
