Question: If a foreign currency 2 denominated payable has been hedged
If a foreign currency 2 denominated payable has been hedged, why is it necessary to adjust the liability for balance sheet purposes?
Relevant QuestionsExplain the application of lower of cost and net realizable value to inventory that was purchased from a foreign supplier. When long-term debt hedges a revenue stream, a portion of the long-term debt becomes exposed to the risk of changes in exchange rates. Why is this? List some ways that a Canadian company could hedge against foreign currency exchange rate fluctuations. On February 1, Year 3, Harrier Ltd., a Canadian company, sold goods to a company in a foreign country and took a note receivable for FF6,200,000. The note matures on February 1, Year 5, and bears interest at the market rate ...Hamilton Importing Corp. (HIC) imports goods from countries around the world for sale in Canada. On December 1, Year 3, HIC purchased 10,000 watches from a foreign wholesaler for DM600,000 when the spot rate was DM1 =$0.741. ...
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