On the 20th of June 2017, the Zanders Belgium Annual Treasury and Risk Seminar was held in Antwerp where more than 40 invited experts gathered under a beautiful blue sky and an exotic temperature to discuss the latest developments and innovations in Corporate Treasury.
Sir Richard Branson once said: “If you want to be a millionaire, start with a billion dollars and launch a new airline.” Although this statement might be an exaggeration, the airline industry has continuously struggled to achieve financial health in recent years. Despite impressive growth rates over the past decades, airlines have (on average) not come close to returning the cost of capital
Derivatives are often used to mitigate or offset risks (such as interest or currency risk) that arise from corporate activities. The standard accounting treatment for hedge instruments is that changes in fair value will have to be recorded in Profit and Loss (P&L). As opposed to the hedge instruments, the hedged assets or liabilities are often measured at (amortized) cost or fair value through equity, or are forecasted items which are not recognized in the Balance Sheet.