You should refer to the FASB Accounting Standards Codification $($FASB ASC$),$ specifically, when answering some of the questions below:

$1.$ For foreign$-$currency related transactions, whether they are accounts receivable or accounts payable denominated in a foreign currency, describe briefly how such transactions are recorded and reported on the income statement when the books are closed at the end of each accounting period, assuming there are outstanding foreign currency related balances receivable or payable at the end of the period.

$2.$ Explain using an example when a firm would use a cash flow hedge to manage a foreign currency transaction. Be specific.

$3.$ Explain using an example when a firm would use a fair value hedge to manage a foreign currency transaction. Be specific.

$4.$ In a few sentences, explain the targeted improvements to the accounting for derivatives and hedged issued by the FASB in $2017$ which are currently effective for financial reporting purposes.

$5.$ Explain at least one major difference that exists today between US GAAP and IFRS on the accounting for foreign currency transactions. Be specific.