Question: FASB Statement 52, which includes accounting for forward contracts, allow hedge ac counting only for transactions and firm commitments. Statement 80, which deals with nonforeign

FASB Statement 52, which includes accounting for forward contracts, allow hedge ac¬ counting only for transactions and firm commitments. Statement 80, which deals with nonforeign currency futures and EITF Issue No. 90-17, which deals with hedging foreign currency risks with purchased options, also allow hedge accounting to be used for anticipated future transactions. Which is correct? How would you help a client use hedge accounting for forward contracts where the underlying event is an anticipated future transaction?

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