Your Company has suddenly and unexpectedly had a large sale denominated in Euros overseas. The payment for the sale will be received according to the terms of the contract with the customer in 30 days. Would you recommend to the Controller executing a forward exchange contract in this situation? Why or why not? Be specific.
A cash flow hedge is a hedge of the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction, that is attributable to a particular risk. It is possible to only hedge the risks associated with a portion of an asset, liability, or forecasted transaction, as long as the effectiveness of the related hedge can be measured.Explain the accounting for a cash flow hedge for the effective and the ineffective portion of any gain or loss for the hedging item and the hedged item on the income statement and the statement of OCI.For a cash flow hedge, when a hedging transaction relates to a forecasted transaction, when should the any gains or losses be reclassified from OCI to earnings?Finally, under what circumstances or situations should cash flow hedges be terminated? Be specific.
A fair value hedge is a hedge of the exposure to changes in the fair value of an asset or liability. It is used to minimize fluctuations in earnings caused by changes in fair values.
Explain how the accounting for a fair value hedge differs for the hedged item and for the hedging item compared to the accounting for a cash flow hedge. Be specific and include an example, if you need to, to explain the difference.
Write a paper of 2-3 pages double-spaced in length, not counting the title and the reference page(s) and any Exhibit(s) or Appendices. Submissions in excess of 3 pages are acceptable.
Use terms, evidence, and concepts from the Module interactive lecture and readings, including professional business language.
Cite at least 3 credible, academic or professional sources for this assignment.
MUST INCLUDE INTRODUCTION AND CONCLUSION WITHIN THE APA GUIDELINES AND FORMATING.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
At homeworkcheg.com, You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with at HomeworkCheg, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more