Question: The FASB classifies forward contracts as those acquired for the
The FASB classifies forward contracts as those acquired for the purpose of hedging and those acquired for the purpose of speculation. What main differences are there in accounting for these two classifications?
Answer to relevant QuestionsWhat is a put option, and how might it be used to hedge a forecasted transaction? Executive stock options (ESOs) are used to provide incentives for executives to improve company performance. ESOs are usually granted "at-the-money," meaning that the exercise price of the options is set to equal the market ...Contract Sharon Myers, chief finance officer for Sitco Products, convinced the president of the company to enter into a 90-day forward contract to sell 900,000 Swedish kronas as a speculative venture. When the forward ...Select the best answer for each of the following.1. A forward contract is a hedge of an identifiable foreign currency commitment if(a) The forward contract is designated as, and is effective as, a hedge of a foreign currency ...Centennial Exchange of St. Louis, Missouri, imports and exports grains. The company has a September 30 fiscal year-end. The periodic inventory system and the weighted-average cost flow method are used by the company to ...
Post your question