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Boston Company, a U.S. firm, purchased merchandise from Moscow Company of Russia for 100,000 rubles on November 1, 2019. Payment of the liability is due
Boston Company, a U.S. firm, purchased merchandise from Moscow Company of Russia for 100,000 rubles on November 1, 2019. Payment of the liability is due on April 30, 2020. On the purchase date, Boston purchased a six-month foreign currency forward contract to buy 100,000 rubles. This forward contract is designated as a cash flow hedge. Boston's fiscal year ends December 31. Relevant exchange rates follow:
Date | Spot Rate | Forward Rate |
November 1, 2019 | $0.20 | $0.22 |
December 31, 2019 | $0.17 | 0.18 |
April 30, 2020 | $0.19 | N/A |
What is the net adjustment to AOCI in 2020?
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