6.04- Exchange Transaction- Cash Flow Hedge Flashcards
1
Q
What is the purpose of a CASH FLOW HEDGE?
A
To protect an entity from fluctuations in cash flows.
2
Q
What is a FORECASTED TRANSACTION?
A
A contract involving a receivable or payable that will be settled in a foreign currency at some point in the future.
3
Q
Where are adjustments in FAIR VALUE recorded for CASH FLOW HEDGES?
A
OCI
