IAS 39 and FASB 133 Scope of the investigation hedging and hedge accounting

The crisis occurred in variable countries and markets through the history, caused the concept of risk management to gain a lot more importance. Particularly with the 1987 stock market crisis related with portfolio insurance operation in USA , a turbulence started in developing markets of some countries such as Mexico (1995) ,Asian Countries (1997) ,Russia with Latin America (1998) caused the banking and insurance sectors to be more sensitive about risk management concept.Multinational enterprises, multinational auditing and accounting enterprises, investors and investment analysts, using hedging accounting, expose new problems with respect to the development in global economy. In consideration of countries possess different accounting systems, the accounting community offered various theoretical and practical solutions about the problems in global aspect. Among these solutions, International Accounting Hormonization and the Convergence of Accounting Standards are mostly defended and accepted approaches by various accounting researchers, aiming to gather countries together around common standarts.Hormonization, prepared by IASB, is practiced by IAS/IFRS. IASB has been internationally recognized as the unique authorized organization through the time. At present, lots of enterprises use IASB standards, and the financial tables in accordance with these standards are accepted in many countries.In this study, it is aimed to compare IAS 39 ?Financial Instruments: Recognition and Measurement? and `?FASB 133 Accounting for Derivative Instruments and Hedging Activities?? with in terms of theory and practice in hedging accounting.Key Words: 1) Risk, 2) Hedging, 3) Financial Reporting Standards.