The document contains 3 multiple choice questions about accounting for foreign currency transactions and hedging foreign currency commitments. The first question indicates that accounting for changes in accounts receivable due to foreign exchange involves comparing the spot rate and forward rate at the balance sheet date. The second question states that a hedge of a foreign currency purchase commitment applies from the commitment date until settlement. The third question identifies the establishment date of a hedge as not being a potential recognition date for a foreign currency commitment.
The document contains 3 multiple choice questions about accounting for foreign currency transactions and hedging foreign currency commitments. The first question indicates that accounting for changes in accounts receivable due to foreign exchange involves comparing the spot rate and forward rate at the balance sheet date. The second question states that a hedge of a foreign currency purchase commitment applies from the commitment date until settlement. The third question identifies the establishment date of a hedge as not being a potential recognition date for a foreign currency commitment.
The document contains 3 multiple choice questions about accounting for foreign currency transactions and hedging foreign currency commitments. The first question indicates that accounting for changes in accounts receivable due to foreign exchange involves comparing the spot rate and forward rate at the balance sheet date. The second question states that a hedge of a foreign currency purchase commitment applies from the commitment date until settlement. The third question identifies the establishment date of a hedge as not being a potential recognition date for a foreign currency commitment.
Which of the following statements is correct with regard to the
accounting for a foreign currency sales on credit and an accompanying foreign currency forward contract? a. Accounting for the change in the value of the accounts receivable at the balance sheet date is based on the difference between the spot rate and the forward at that date b. It is not necessary to recognize the foreign currency forward contract in the financial records at the date the contract is created c. It is not necessary to the account for the accounts receivable because the company has a forward contract d. Changes in the fair value of the forward contract are based on the change in the spot rate
2. Over what time period is a hedge of a foregin currency
commitment on a purchase transaction applicable? a. From the date of the commitment until the date of settlement b. From the transaction date until the settlement date c. From the date of the commitment until the transaction date d. From the date of the commitment until the balance sheet date
3. Which of the following is not a potential recognition date when a
foreign currency commitment exists? a. Balance sheet date b. Establishment date of hedge c. Transaction date d. Settlement date of hedge
One of The Criteria For Determining The Classification of A Financial Asset Is Whether The Contractual Cash Flows Are Solely Payments of Principal and Interest