This excerpt taken from the LPL 6-K filed Nov 6, 2009.
We enter into foreign currency forward contracts to manage the exposure to changes in the value of foreign currency denominated accounts receivable and accounts payable in accordance with its foreign currency risk management policy. Hedge accounting is not applied to the abovementioned derivatives.
(1) Foreign currency forward contracts
Details of foreign currency forwards outstanding as of September 30, 2009 are as follows:
(In millions of Won and USD, except forward rate)
(2) Unrealized gains and losses
Unrealized gains and losses related to the above derivatives as of September 30, 2009 are as follows:
(In millions of Won)
The unrealized gains and losses are charged to operations as gains and losses on foreign currency translation for the nine months ended September 30, 2009.