The value of a business’s asset that represents the positive fair value of its derivative contracts that are used for hedging or speculative purposes. Derivatives are financial instruments whose value is derived from the value of an underlying asset, liability, index, or rate. Hedging is a strategy that aims to reduce the risk of adverse price movements in an asset or liability by taking an offsetting position in a related derivative. Derivative and hedging assets are reported on the balance sheet and are expected to be settled within or beyond one year.