Firms must designate each derivative as a hedging instrument, or else accounting views the derivative as a nonhedging instrument. Furthermore, firms must designate each hedging instrument as either a fair value hedge or a cash flow hedge. The accounting for cash flow hedges
a. remeasures both the hedged item and the derivative to fair value each period and recognize any unrealized gains and losses in net income.
b. remeasures the derivative to fair value each period and include the unrealized gain or loss in other comprehensive income to the extent that the derivative instrument is effective in neutralizing risk. When the firm settles the hedged item, transfer the previously unrealized gain or loss from other comprehensive income to net income.
c. remeasures the derivative to fair value each period and include the unrealized gain or loss in net income.
d. all of the above
e. none of the above
B
You might also like to view...
When an asset is purchased (or disposed of) at a time other than the beginning or the end of an accounting period, depreciation is recorded for part of a year so that the year of purchase or the year of disposal is charged with its share of the asset's depreciation.
Answer the following statement true (T) or false (F)
Nescafe coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafe generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product/promotion strategy?
A. product customization B. product extension C. dual integration D. dual adaptation E. product adaptation
Lourdes' boss, Miguel, has a temper and has been known to chew employees out for minor infractions, and his behavior is changing the workplace. Given what you know about trust, what is Lourdes most likely experiencing?
A. Lourdes is working more efficiently than ever because she knows Miguel's focus is on the work of other employees. B. Lourdes's relationship with Miguel is developing into one based on vaguely defined obligations. C. Lourdes finds herself working more slowly and erratically as she steels herself for another one of Miguel's outbursts. D. Lourdes feels as though she might have to become a whistleblower in order to save the company from Miguel's actions. E. Lourdes feels like she can trust Miguel to look out for her interests as an employee.
The organization that was created to facilitate the international coordination and unification of industrial standards is?
a. NIST b. ISO c. ISM d. MSF