foreign currency derivatives and hedging policy外汇衍生品及对冲政策.pdfVIP

ForeignCurrencyDerivativesandHedging

Approver:AuditCommitteeoftheBoardof

Directors

Owners:AssistantTreasurerForeignCurrencyDerivatives

DirectorofFinancialReportingand

Contacts:AccountingandHedging

bevans@

RyCarter@

Audience:AllFlowserveAssociates

Revised:June9,2015

PURPOSEThepurposeofthisistoprovideguidancewithrespecttoderivative

financialinstrumentsusedtohedgeexposurestoforeigncurrencyriskby

outliningtheauthorityandresponsibilitytomanagesuchrisk.Adherencetothis

ensuresthattransactionsinvolvingforeignederivative

instrumentsareproperlyauthorizedandthattheaccountingforsuch

instrumentsisrenderedinaccordancewithUS-GAAPandU.S.taxrules.

SCOPEAllDivisionalVice-sofFinance,Controllers(Site/Regional/Sector/

Divisional),SiteFinancialnel,CorporateTreasuryandCorporate

Accountinginvolvedinderivativecontractsandhedgingactivities.

Allnelinvolvedincontractingandprocurementactivitiesaretobe

familiarwiththecontentsandrequirementsofthis