"Assumes that Ricky Corporation (Ricky) normally sells goods in France and therefore has a stream of income which is denominated in Euros. Ricky enters into a master agreement with a bank to convert this future stream of Euros into US dollars. Determine whether this agreement is considered a derivative under both the US GAAP and under the IFRS. Support your decision with reference(s) to the appropriate literature issued by both standard setters" (CSU Global)

Answer rating: 100% (QA)

Under the GAAP rules and regulations the derivative accounting is segmented into two main categories including hedge as well as nonhedge accounting He... View the full answer