Changes in the fair value of the effective portion of a hedging financial instrument are recognized as

Question:

Changes in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following?

image text in transcribed

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

See More Books

Question Posted: Mar 14, 2024 12:00 AM

See More Questions

Select the correct answer for each of the following questions. 1. According to ASC 815, which of the following is not an underlying? a. A security price. b. A monthly average temperature. c. The...
Excerpts from the disclosures on derivatives in a recent year (denoted Year 4) by The Coca-Cola Company (Coke) appear below. Our Company uses derivative financial instruments primarily to reduce our...
In Note D to its 2011 financial statements, IBM includes disclosure about its derivatives as follows: Note: AOCI represents Accumulated other comprehensive income/(loss) in Consolidated Statement of...
True or False: 1. Economists are not completely in agreement on what constitutes money for all purposes. 2. People use nontransaction accounts primarily because they generally pay higher interest...
The focal length for red light that strikes a spherical concave lens is -15 cm. Referring to Figure 27-26, will the magnitude of the (negative) focal length for blue light be greater than, less than,...
_______ The mean of the t distribution is zero.
Redesign the VOCs adsorber of Example 9.15 for a breakthrough time of $4.0 \mathrm{~h}$. The pressure drop through the bed [calculated using the Ergun equation (2-95)] should not exceed \(1.0...
Knudsen Corporation was organized on January 1, 2016. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common stock. At...
Construct factor trees for each of these numbers. (a) 108 (b) 378 (c) 550
According to ASC 815, for which of the following is hedge accounting not allowed? a. A forecasted purchase or sale. b. Available-for-sale securities. c. Trading securities. d. An unrecognized firm...
A decrease in the intrinsic value of a fair value hedge is accounted for as a. A decrease of current earnings. b. Not recorded because the exchange transaction has not yet occurred. c. A decrease of...
Topographic maps are an example of what type map? What do topographic maps show and what are they used for?
What are the assumptions on which the MM Model is based? What is the significance of each of these assumptions?
Assume an interest rate of 10 per cent for all the following problems: a. You have 10,000 now. How much will you have after five years? After 10 years? Does the amount increase or decrease? Why? b. A...
The cost of capital refers to the investor-/market-determined required rate of return for investment in the company. Elaborate.
Why is debt considered to be risky? Why do companies borrow if debt is so risky?
What do you understand by the agency cost of free cash flow? How can it be overcome?
Two moist air streams with 85% relative humidity, both flowing at a rate of 0.2 lbm/s of dry air are mixed in a SSSF setup. One inlet flow stream is at 90 F and the other at 61 F. Find the exit...
Suppose that fraction used = / 1.0 + 0.1Mt. for some parameter 1. Write the discrete-time dynamical system and solve for the equilibrium. Sketch a graph of the equilibrium as a function of ....
How do the elimination entries at the end of the year change when an acquisition occurs at midyear rather than at the beginning of the year?
Why do companies that file consolidated tax returns often choose to allocate tax expense to the individual affiliates?
How do unrealized profits on intercompany transfers affect the amount reported as income tax expense in the consolidated financial statements?
1. What determines the effectiveness of executive teams? 2. Why is external monitoring important for strategic leadership? 3. What are some guidelines for strategy formulation? 4. Briefly describe...
The idea that employment rents are an incentive for employees to work harder is illustrated in a study by Edward Lazear (an economic advisor to former US President George W. Bush) and his co-authors....
Traffic fatalities and 9/11. Figure 0.4 provides information on the number of fatal traffic accidents by month for the years 19962001. 8 The vertical blue line above each month gives the lowest to...

Changes in the fair value of the effective portion of a hedging financial instrument are recognized as

Question:

Cash Flow Hedge Fair Value Hedge Yes Yes b. No Yes c. Yes No d. No No

Step by Step Answer:

Advanced Financial Accounting

Students also viewed these Business questions