Changes in the fair value of the effective portion of a hedging financial instrument are recognized as

Question:

Changes in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following?

image text in transcribed

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

Step by Step Answer:

Related Book For book-img-for-question

Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

See More Books

Question Posted: Mar 14, 2024 12:00 AM

See More Questions

Select the correct answer for each of the following questions. 1. According to ASC 815, which of the following is not an underlying? a. A security price. b. A monthly average temperature. c. The...
Excerpts from the disclosures on derivatives in a recent year (denoted Year 4) by The Coca-Cola Company (Coke) appear below. Our Company uses derivative financial instruments primarily to reduce our...
In Note D to its 2011 financial statements, IBM includes disclosure about its derivatives as follows: Note: AOCI represents Accumulated other comprehensive income/(loss) in Consolidated Statement of...
True or False: 1. Economists are not completely in agreement on what constitutes money for all purposes. 2. People use nontransaction accounts primarily because they generally pay higher interest...
The focal length for red light that strikes a spherical concave lens is -15 cm. Referring to Figure 27-26, will the magnitude of the (negative) focal length for blue light be greater than, less than,...
Statoll, the national oil company of Norway, has acquired debt capital in a variety of foreign currencies (see Exhibit 7.11). After borrowing the capital, however, Statoil swapped its currency...
Contrast the advantages and disadvantages of the direct and indirect methods of preparing the statement of cash fl ows. Are both methods acceptable? Which method is preferred by the FASB? Which...
1. According to the case, what external trends did managers at Kohls have to deal with? In addition to these, what other external components might be important to these managers? (See Exhibit) How...
Adamas Medical currently has 85,000 shares outstanding. Book value is $762,000 and market value is $1.7 million. The company has net income of $550,000. Adamas Medical is considering a project which...
According to ASC 815, for which of the following is hedge accounting not allowed? a. A forecasted purchase or sale. b. Available-for-sale securities. c. Trading securities. d. An unrecognized firm...
A decrease in the intrinsic value of a fair value hedge is accounted for as a. A decrease of current earnings. b. Not recorded because the exchange transaction has not yet occurred. c. A decrease of...
In Problems 2554, solve each system. Use any method you wish. 5 2 y 3 x +3=0 + 1 y = 7
Using the ideas of kinetic particle theory when you come home from school and open the door you can smell food being cooked
The following information relates to Salamat Corporation for the last year.Salamat uses direct labor hours as an overhead base. Estimated direct labor hours 360,000 hours Estimated manufacturing...
Code in matlab the translational motion via numeric integration of the orbit (two-body orbit sufficient). Use the orbital characteristics of the Centaur V upper stage from the Atlas V launch on...
Lolita Company has the following information available for June 2020: Beginning Work in Process Inventory (25% as to conversion) 20,000 units Started 130,000 units Ending Work in Process Inventory...
Question 3 (15 marks) Sporty Ltd. produces scooters and skateboards. At the beginning of the year, the following volume of activities were budgeted for the year: Production volume/units Direct labour...
Warren Buffett often says that he doesnt want a lot of diversification in his portfolio. He says that diversification means buying stocks that go up along with stocks that go down; but he only wants...
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
How do the elimination entries at the end of the year change when an acquisition occurs at midyear rather than at the beginning of the year?
Why do companies that file consolidated tax returns often choose to allocate tax expense to the individual affiliates?
How do unrealized profits on intercompany transfers affect the amount reported as income tax expense in the consolidated financial statements?
Compute the value of ordinary bonds under the following circumstances assuming that the coupon rate is 0.06:(either the correct formula(s) or the correct key strokes must be shown here to receive...
A tax-exempt municipal bond has a yield to maturity of 3.92%. An investor, who has a marginal tax rate of 40.00%, would prefer and an otherwise identical taxable corporate bond if it had a yield to...
Please note, kindly no handwriting. Q. Suppose a 3 year bond with a 6% coupon rate that was purchased for $760 and had a promised yield of 8%. Suppose that interest rates increased and the price of...

Changes in the fair value of the effective portion of a hedging financial instrument are recognized as

Question:

Cash Flow Hedge Fair Value Hedge Yes Yes b. No Yes c. Yes No d. No No

Step by Step Answer:

Advanced Financial Accounting

Students also viewed these Business questions