Question
Which one of the following is an example of hedge accounting for a U.S. company? A. Remeasurement gains and losses on international subsidiaries are reported
Which one of the following is an example of hedge accounting for a U.S. company?
A. | Remeasurement gains and losses on international subsidiaries are reported in income as incurred; changes in the value of related hedges are also reported in income as incurred. | |
B. | Changes in the U.S. dollar value of foreign currency denominated purchase orders for merchandise are an adjustment to the inventory value when delivered. | |
C. | Gains and losses on forward contracts not qualifying as hedges are reported in income as incurred. | |
D. | Changes in the U.S. dollar value of euro-denominated receivables are reported in income; changes in the value of the related hedge are also reported in income. |
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