Question: 2. Which statement is incorrect regarding fair value hedges and cash flow hedges of an asset or liability. a. results of a fair value hedge

2. Which statement is incorrect regarding fair value hedges and cash flow hedges of an asset or liability.

a. results of a fair value hedge are reported in the income statement

b. results of a cash flow hedge are reported in Other Comprehensive Income

c. under a cash flow hedge the difference between the gain or loss on the hedge and the gain or loss on the item being hedged is reported in Other Comprehensive Income

d. under a cash flow hedge the difference between the gain or loss on the hedge and the gain or loss on the item being hedged is reported in the income statement

e. under a fair value hedge the difference between the gain or loss on the hedge and the gain or loss on the item being hedged is reported in the income statement

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

a. 1. Roberts has a 50,000 foreign currency payable due in 90 days. What is the appropriate action for Roberts to take today if it wishes to hedge its foreign exchange exposure. enter into an FX...

2. Which statement is incorrect regarding fair value hedges and cash flow hedges of an asset or liability. a. results of a fair value hedge are reported in the income statement b. results of a cash...

Please answer only if you are 100%sure. Dont post the same answer already posted by someone esle. Thank you 1. Roberts has a 50,000 foreign currency payable due in 90 days. What is the appropriate...

Which statement is incorrect regarding fair value hedges and cash flow hedges of an asset or liability. a. results of a fair value hedge are reported in the income statement b. results of a cash flow...

Which statement is comect regarding fair value hedges and cash flow hedges of a triguency asset or ability Oa revelation of a cash flow hedge is reported in the income statement Ob, under a cash how...

FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT for the year ended 29 January 2022 Our revenue minus our incurred expenses showing the Partnership's overall profit for the year 2022 2021 Notes Em...

Solve the following 25 problems. Write all your solutions on this sheet. In addition, write your calculations or rationale for your answer on this sheet. In other words, it's not enough to give the...

Question 1 - Financial Performance analysis. For the attached financial reports please carry out the following tasks a) Carryout at least 8 ratio analysis presented in an appropriate format (16...

Calculate the profitability ratio, liquidity ratio, and efficiency ratio in year 2016 - CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 1 DECEMBER 2015 Note 2016 RM 000 2015 RM 000 ASSETS...

C. (21 points) On January 3, 2019, Hassert Company owns a $6,000,000, note receivable that matures on 1/1/2022 with a fixed interest rate of 6% receivable each June 30 and December 31. By the end of...

The Oklahoma City Insurance Agency received the following notes during 2012: Requirements 1. Identifying each note by number, compute the total interest on each note over the note term using a...

According to the loanable funds framework, the equilibrium interest rate is determined by the Bank of Canada. the Chartered Banks when setting their prime lending rate. the interaction between the...

Which type of hypervisor is primarily used in test environments? A Type 1 D . Type 2 C . Type 3 D . None of the above

Every Project needs to have a Project Plan. What are the 4 Key questions that every good project plan should answer?

6. How can hidden knowledge guide our actions?

7. How can the models we use have a detrimental effect on others?

2. In this chapter, the reader should reflect on the following concepts: Systemic structuring, the displaced error, the communicable part of knowl-edge, tacit knowledge, hidden knowledge, analogy,...