Question
The accounting for fair value hedges records the derivative at its amortized cost. carrying value. fair value. historical cost. None of the above. 5- How
The accounting for fair value hedges records the derivative at its
amortized cost.
carrying value.
fair value.
historical cost.
None of the above.
5-
How does electing the Fair Value Option under US GAAP change the reporting for investments classified as Trading Securities? Balance Sheet effect / Income Statement effect
No change/ No change
Change to fair value / Change to recognized unrealized gain & loss in OCI
Change to fair value / Change to recognized unrealized gain & loss in the Income Statement
No change / Change to recognized realized gain & loss in the Income Statement
None of the above describes the change due to electing the Fair Value Option
6-
A company records an unrealized loss on short-term debt securities classified as trading. Unrealized losses are not tax deductible but realized losses are. This would result in what type of difference and in what type of deferred income tax?
Type of Difference Deferred Tax
Temporary Liability
Temporary Asset
Permanent Liability
Permanent Asset
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