On April 4, 2018, C delivered to Pakistan firm inventory it sold for 100,000 rupees payment is due to be received on August 2, 2018, the company’s fiscal year ends June 30. Also on March 4, C entered into foreign exchange forward to sell 100,000 rupees on August 2, 2018. 4/4/186/30/188/2/18 Spot rate (rupees).80.84.82 Forward rate (rupees).77.83.82 

a.The June 30, 2018, profit or loss statement, foreign exchange gain or loss due to hedged item amounted to? 

b.The June 30, 2018 profit and loss statement, foreign exchange gain or loss due to forward contract/ hedging instrument is? 

c. June 30, 2018, net foreign exchange gain/loss in the profit and loss statement amounted to? 

d.What amount will C, disclose as the fair value of the forward contract on June 30, 2018? 

e.On settlement date, August 2, 2018, foreign currency gain or loss due to sale of inventory amounted to? 

f.On settlement date, August 2, 2018 profit or loss statement, foreign exchange gain or loss due to forward contract/ hedging instrument? 

g.What amount will C, disclose as fair value of the forward contract on August 2, 2019?

Answer rating: 100% (QA)

On April 4 2018 Company C delivered to Pakistan firm inventory it sold for 100000 rupees payment is ... View the full answer