A company has a discount on a forward contract for a foreign currency denominated asset. How is the discount recognized over the life of the contract under fair value hedge accounting? 

As a debit to discount expense 

As a debit to amortization expense 

As a debit to accumulated other comprehensive income 

As a debit impact on net income, as a result of the hedge 

As a decreases to sales

Answer rating: 100% (QA)

Solution Correct Answer As a debit to discount expense Explanation Un... View the full answer