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be received on March 1 , 2 0 2 4 . Icebreaker enters into a forward contract on December 1 , 2 0 2 3
be received on March Icebreaker enters into a forward contract on December to sell dinars on March
The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a
straightline method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:
Icebreaker must close its books and prepare financial statements at December
a What is the impact on net income?
a What is the impact on net income?
a What is the impact on net income over the two accounting periods?
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