Wheels Group Inc GRFJF

Cash Flow Hedges

[SkyeCairns]

WGI in their financials indicated that the gold forward contracts were not considered by WGI as Cash Flow Hedges and therefore  the contracts need to be mark to marketed.   Did WGI have the option to treat them as cash flow hedges ? or are the hedges constructed in such a way they have to be MTM'd.?

[gwrbi]

Not sure on the specific question.  However when gold plummetted earlier this month I laughed at the consideration that all of a sudden WGI's $801/oz hedge was "golden".  Not only that, all of a sudden the huge Mark to Market loss over the last few quarters would be reversing over the next next few quarters - creating a big "GAAP" win.  But yet the underlying