Concept explainers
Introduction: The forward exchanges of currencies show exchange rates of selected major international currencies for a month, three months, and six months forward. For companies willing to deal in forward exchange, a well-organized dealer market in forward exchange contracts is available. On a given date or same date, the forward rate is not the same as the spot rate. If the forward is higher than the spot rate it is expected that currency may be stronger in the future. The spread is determined as a difference between the forward rate and the spot rate on a given date. The perceived strengths of the weakness of currencies are understood by the spread.
To explain: The main differences in accounting the different uses of forward contracts.

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Chapter 11 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
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