Question: Would hedge accounting be used in a situation where the hedged item and the hedging instrument were both monetary items on a companys statement of

Would hedge accounting be used in a situation where the hedged item and the hedging instrument were both monetary items on a company’s statement of financial position? Explain.

Step by Step Solution

★★★★★

3.56 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Hedge accounting would not be used in this situation because the gains and ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

464-B-A-G-F-A (6704).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Statement of financial position items for Montoya Inc. follow for the current year, 2014: Instructions (a) Prepare a classified statement of financial position in good form. The numbers of authorized...

Statement of Financial Position Preparation Presented below are a number of statement of financial position items for Montoya. Inc., for the current year, 2010. Instructions Prepare a classified...

A partial statement of financial position of Century University is shown below. During the fiscal year ended June 30, 2008, the following transactions occurred: 1. A gift of $100,000 was received...

What is the relevant cash element above the significant policy Urgent!!! pls highlight exactly Significant accounting policy Basis of Consolidation Business Combinations The consolidated financial...

What is the relevant cash element above the significant policy pls highlight exactly SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation Business Combinations The consolidated financial statements...

SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation Business Combinations The consolidated financial statements comprise the financial statements of the Company and its subsidiary company as at...

MFA 6 0 5 Advanced Accounting Theory Assignment 2 Companies are concerned about different operating and financial risks arising from many aspects of their business ( for example, changes in exchange...

answer this question useing Emaar information: 1. Briefly explain the different types of investment companies make in the securities of other companies. 2. Locate a recent annual report of a public...

2.Excel Ratio File spreadsheet: Using the SEC Financial Statements Ratios and Calculations, prepare a ratio analysis of your SEC corporation's current and prior year's financial statements. In...

Income Statement Vertical Analysis - The Clorox Company (All items on each statement is a % of net sales on the statements rounded to 1 decimal point) Using Excel , compute common-size income...

Read the kimbel's department store case and answer the following question: Why do you reference to Gladys Weinholtz? However not everyone is enthusiastic specially Gladys Weinholtz who sells...

Merchandise trade today accounts for less than 2 percent of all the foreign exchange transactions around the world. Can one deduce that merchandise plays an insignificant role in todays economies?...

The botulinum exotoxin causes _ _ _ _ _ _ _ . Group of answer choicesnone of theseantibiotic associated colitistetanusmuscle contraction

Make organizational information available on-line, but make sure it is secure.

Refer to the preceding facts for Presss acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2013, Press held merchandise...

Refer to the preceding facts for Presss acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2012, Press held merchandise...

Refer to the preceding facts for Presss acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2013, Press held merchandise...

1. a) b) Patrice owes $39,000 now. A lender will carry the debt for eight more years at 9 percent interest. That is, in this particular case, the amount owed will go up by 9 percent per year for...

At the beginning of last year, Thomas purchased 4 0 0 shares of the web.com fund at an NAV of $ 1 6 . 7 1 and automatically reinvested all distributions as a result of reinvesting, Thomas end of the...

Morris Glass Company has decided to invest funds for the next 5 years so that development of smart glass is well funded in the future. This type of new-technology glass uses electrochrome coating to...