ADVANCED ACCOUNTING
ADVANCED ACCOUNTING
12th Edition
ISBN: 9780357671221
Author: FISCHER
Publisher: CENGAGE L
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Chapter 9.M, Problem 2UTI
To determine

Hedges:

The derivative is properly structured for the purpose of hedging. The change in the value of derivative 9th hedging instrument should be recognised in the same accounting period as the change in the value of the related asset or liability (the hedged item) these hedges are generally designated as either fair value or cash value.

Effects of the exposure with the risk associated to a firm’s commitment on selling the inventory when a fair value hedge was intended to reduce.

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