As illustrated later, hedging instruments are valued
during the contract period, and this value is reported on the
balance sheet. General ledger accounts, such as FX Contract
Value—Option and FX Contract Value—Forward, net, are
used. These accounts can accommodate being in either a
receivable or payable position. Thus when these accounts
appear in a company's asset and liability sections of its
balance sheet, they convey that entity's favorable or
unfavorable position, respectively, in the contract.