Explain what an economic hedge is. Will hedge accounting always result in the same outcome as an

Question:

Explain what an economic hedge is. Will hedge accounting always result in the same outcome as an economic hedge?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Applying International Financial Reporting Standards

ISBN: 978-0730302124

3rd edition

Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise

See More Books

Question Posted: Apr 30, 2016 12:59 PM

See More Questions

Many companies expose themselves to various financial risks, primarily due to their business models (the way they conduct business). Instructions (a) Discuss the preceding statement by identifying...
Recall the Rombaurer Metals example in the chapter: On October 5, 2014, Rombaurer has 10 million pounds of copper inventory on hand at an average cost of S0.65 a pound. The spot price for copper is...
Air Canada is Canada's largest domestic and international airline, providing scheduled and charter air transportation for passengers and cargo. The airline industry has suffered many difficulties and...
A beverage wholesale outlet sells beverages by the case. On April 13, a customer purchased 18 cases of wine at $42 per case, 20 cases of soda at $29 per case, and 45 cases of water at $17 per case....
(Multiple Choice) 1. For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to a. the average time period between business recessions. b. the time period...
Estimating Cash Flows in a Nonprofit Organization: Edmonton Machine Shop, a government vehicle repair shop, purchased a special purpose machine on January 1 , Year 0. On December 3 1 , Year 0, the...
Briefl y list the fi ve steps of confl ict management.
A study of the PSA blood test for diagnosing prostate cancer in men (by R. M. Hoffman et al., BMC Family Practice, vol. 3, p. 19, 2002) used a sample of 2620 men who were 40 years and older. When a...
You are looking to invest raw land to eventually build a warehouse. The land costs $900k to purchase today and you will have to pay $25k per year in property taxes. At the beginning of the 9th year...
The co-op student working at Morneau Equipment Inc. prepared their adjusted trial balance in alphabetical order. All accounts have their normal balances. Required 1. Prepare the appropriate closing...
IAS 39 applies a 'rights and obligations approach' to the recognition of financial instruments. Discuss.
Distinguish, explain and discuss the meaning of 'highly effective' and 'highly probable' in the context of the hedge accounting rules in IAS 39.
Bob was waiting at the crosswalk for the light to turn green. As he stood there, a car that was stopped in the road next to him suddenly exploded, and Bob was injured by the blast. A defect in the...
Consider a piston with an orifice in a cylinder filled with a fluid of viscosity $\mu$ as shown in Fig. 1.106. As the piston moves in the cylinder, the fluid flows through the orifice, giving rise...
Add a function to SmallWorld that computes the global clustering coefficient of a graph. The global clustering coefficient is the conditional probability that two random vertices that are neighbors...
Show that the generators of the algebra (33.8) are related by parity. For a Dirac wavefunction the action of parity is $P \psi(\boldsymbol{x}, t) P^{-1}=\gamma_{0} \psi(-\boldsymbol{x}, t)$, up to a...
Extend the algorithm you designed for Exercise 6.2 so that it can evaluate positions that are nonterminalin other words, positions where the game has not yet finished. Your score should be positive...
In addition to tanh, another s-shaped smooth function, the logistic sigmoid function y=1 / (1+exp(x)), is commonly used as an activation function in neural networks. A common way to implement them in...
A _______ is a genetic unit consisting of one or more populations of organisms that usually closely resemble one another physically and physiologically.
Find the radius of convergence of? 1.2.3 1.3.5 (2n-1) r2n+1 -1
Arun Company has had poor operating results for the past two years. As the accountant for Arun Company, you have the following information available to you: Total assets and owner's equity at the...
Jimenez Company sells outdoor sports equipment. At the December 31, 2009, year end, the following financial information was available from the income statement: administrative expenses, $80,800; cost...
A summary of data from the income statements and balance sheet for Roman Construction Supply Company for 2011 and 2010 appears below. Total assets and owner's equity at the beginning of 2010 were...
A family has a $117,443, 25-year mortgage at 5.4% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage...
Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering.
What is the NPV of a project that costs $34,000 today and is expected to generate annual cash inflows of $11,000 for the next 7 years, followed by a final inflow of $14,000 in year 8. Cost of capital...

Explain what an economic hedge is. Will hedge accounting always result in the same outcome as an

Question:

Step by Step Answer:

Entities enter into hedge arrangements for economic reasons to protect themsel...View the full answer

Applying International Financial Reporting Standards

Students also viewed these Accounting questions