AUD 3 Internal Control 16 - 7 Investing and Financing Cycle - Derivatives and Hedge Accounting

Question 1

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

Answer 1

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

Question 2

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, or_________s, are exposed to market risks

Answer 2

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks

Question 3

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to m___t risks such as interest rate risk,

Answer 3

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk,

Question 4

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as in_______ rate risk, foreign exchange risk,

Answer 4

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk,

Question 5

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, fo______ exchange risk, commodity price risk,

Answer 5

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk,

Question 6

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign ex________ risk, commodity price risk,

Answer 6

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk,

Question 7

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, com_______ price risk, etc., that give rise to income volatility.

Answer 7

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

Question 8

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity pr___ risk, etc., that give rise to income volatility.

Answer 8

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

Question 9

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to in____ volatility.

Answer 9

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

Question 10

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income vo______y.

Answer 10

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

Question 11

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, orga_________s often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

Answer 11

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

Question 12

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mi______ or economically hedge against such exposures using derivative financial instruments.

Answer 12

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

Question 13

The Basics of Accounting for Derivatives and Hedge Accounting

As a result, organizations often will take some action to mitigate or eco________lly hedge against such exposures

Answer 13

The Basics of Accounting for Derivatives and Hedge Accounting

As a result, organizations often will take some action to mitigate or economically hedge against such exposures

Question 14

The Basics of Accounting for Derivatives and Hedge Accounting

As a result, organizations often will take some action to mitigate or economically h_____ against such exposures using derivative financial instruments.

Answer 14

The Basics of Accounting for Derivatives and Hedge Accounting

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

Question 15

The Basics of Accounting for Derivatives and Hedge Accounting

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using de_______ financial instruments.

Answer 15

The Basics of Accounting for Derivatives and Hedge Accounting

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

Question 16

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative fin________ instruments.

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Answer 16

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 17

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

In addition some org________s may enter into derivative contracts for speculative or trading purposes.

Answer 17

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 18

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into de_______ contracts for speculative or trading purposes.

Answer 18

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 19

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative con____s for speculative or trading purposes.

Answer 19

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 20

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative contracts for spe________ or trading purposes.

Answer 20

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 21

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative contracts for speculative or t___ing purposes.

Answer 21

The Basics of Accounting for Derivatives and Hedge Accounting

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 22

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Answer 22

The Basics of Accounting for Derivatives and Hedge Accounting

In the regular course of business operations, organizations, are exposed to market risks such as interest rate risk, foreign exchange risk, commodity price risk, etc., that give rise to income volatility.

As a result, organizations often will take some action to mitigate or economically hedge against such exposures using derivative financial instruments.

In addition some organizations may enter into derivative contracts for speculative or trading purposes.

Question 23

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Answer 23

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Question 24

Accounting for Derivative Instruments

Under current U.S. and International ac______ing standards,

Answer 24

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

Question 25

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an e____y is required to measure derivative instruments at fair value,

Answer 25

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value,

Question 26

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to me_____ derivative instruments at fair value,

Answer 26

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value,

Question 27

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure der_______ instruments at fair value, or mark-to-market (MTM),

Answer 27

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

Question 28

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative ins________s at fair value, or mark-to-market (MTM),

Answer 28

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

Question 29

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at f___ value, or mark-to-market (MTM),

Answer 29

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

Question 30

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in f___ value or MTM to be recognized through the income statement.

Answer 30

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in fair value or MTM to be recognized through the income statement.

Question 31

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with ch____s in fair value or MTM to be recognized through the income statement.

Answer 31

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in fair value or MTM to be recognized through the income statement.

Question 32

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in fair value or MTM to be r_____ized through the income statement.

Answer 32

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in fair value or MTM to be recognized through the income statement.

Question 33

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in fair value or MTM to be recognized through the in____ statement.

Answer 33

Accounting for Derivative Instruments

Under current U.S. and International accounting standards,

an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM),

with changes in fair value or MTM to be recognized through the income statement.

Question 34

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is re____ed to measure de_______ instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Answer 34

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Question 35

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be re_________ed through the in____ statement.

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Answer 35

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 36

Accounting for Derivative Instruments

Fair value is de____d under U.S. accounting standards as

“the price that would be received to sell an asset,

Answer 36

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

Question 37

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting sta______s as

“the price that would be received to sell an asset,

Answer 37

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

Question 38

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the p___ that would be received to sell an asset,

Answer 38

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

Question 39

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be re_____d to sell an asset,

Answer 39

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

Question 40

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to s__l an asset,

Answer 40

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset, .”

Question 41

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an a___t,

or paid to transfer a liability

Answer 41

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability

Question 42

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or p___ to transfer a liability

Answer 42

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability

Question 43

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to tr_____ a liability in an orderly transaction

Answer 43

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

Question 44

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a li_____ty in an orderly transaction

Answer 44

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

Question 45

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly tra________

between market participants at the measurement date.”

Answer 45

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants at the measurement date.”

Question 46

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between ma____ participants

Answer 46

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants

Question 47

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market pa_________s at the measurement date.”

Answer 47

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants at the measurement date.”

Question 48

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants at the me________t date.”

Answer 48

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants at the measurement date.”

Question 49

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants at the measurement d___.”

Answer 49

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as

“the price that would be received to sell an asset,

or paid to transfer a liability in an orderly transaction

between market participants at the measurement date.”

Question 50

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the pr___ that would be re___ed to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Answer 50

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 51

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to s_ll an as__t, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Answer 51

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 52

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or p___ to tr_____r a liability in an orderly transaction between market participants at the measurement date.”

Answer 52

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 53

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction bet____ mar___ participants at the measurement date.”

Answer 53

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 54

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the me_________t d___.”

Answer 54

Accounting for Derivative Instruments

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 55

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Answer 55

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Question 56

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

International accounting st________s define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Answer 56

Accounting for Derivative Instruments

Under current U.S. and International accounting standards, an entity is required to measure derivative instruments at fair value, or mark-to-market (MTM), with changes in fair value or MTM to be recognized through the income statement.

Fair value is defined under U.S. accounting standards as “the price that would be received to sell an asset, or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Question 57

Accounting for Derivative Instruments

In_________ accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Answer 57

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Question 58

Accounting for Derivative Instruments

International ac_______ng standards define fair value slightly differently as

“the amount for which an asset could be exchanged,

Answer 58

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,

Question 59

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the am___t for which an asset could be exchanged,

Answer 59

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,

Question 60

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an as___ could be exchanged,

Answer 60

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,

Question 61

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a l_____y settled,

Answer 61

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,

Question 62

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability s____ed,

Answer 62

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,

Question 63

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between kno__________le, willing parties

Answer 63

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, willing parties

Question 64

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, w__ling parties
in an arm’s length transaction.”

Answer 64

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, willing parties
in an arm’s length transaction.”

Question 65

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, willing parties
in an arm’s l___th transaction.”

Answer 65

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, willing parties
in an arm’s length transaction.”

Question 66

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, willing parties
in an arm’s length tr________n.”

Answer 66

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as

“the amount for which an asset could be exchanged,
or a liability settled,
between knowledgeable, willing parties
in an arm’s length transaction.”

Question 67

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an as___ could be ex_______ed, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Answer 67

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Question 68

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, w___ing p___ies in an arm’s length transaction.”

Answer 68

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Question 69

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Non-performance r___ or the risk that an obligation will not be fulfilled (also known as credit risk) is also required to be incorporated into the fair value measurement. While the definitions differ, the principle is generally the same in the U.S. and internationally.

Answer 69

Accounting for Derivative Instruments

International accounting standards define fair value slightly differently as “the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.”

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk) is also required to be incorporated into the fair value measurement. While the definitions differ, the principle is generally the same in the U.S. and internationally.

Question 70

Accounting for Derivative Instruments

N__-performance risk or the risk that an obligation will not be fulfilled

Answer 70

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled

Question 71

Accounting for Derivative Instruments

Non-performance risk or the ri__ that an obligation will not be fulfilled

Answer 71

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled

Question 72

Accounting for Derivative Instruments

Non-performance risk or the risk that an ob_______ will not be fulfilled

Answer 72

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled

Question 73

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will n__ be fulfilled

Answer 73

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled

Question 74

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be f___illed (also known as credit risk)

Answer 74

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

Question 75

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit ri__)

is also required to be incorporated into the fair value measurement. While the definitions differ, the principle is generally the same in the U.S. and internationally.

Answer 75

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement. While the definitions differ, the principle is generally the same in the U.S. and internationally.

Question 76

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit ri__)

is also required to be incorporated into the fair value measurement.

Answer 76

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

Question 77

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also re____ed to be incorporated into the fair value measurement.

Answer 77

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

Question 78

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the f___ value measurement.

Answer 78

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

Question 79

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be inc_______ed into the fair value measurement.

Answer 79

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

Question 80

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value mea________t.

While the definitions differ, the principle is generally the same in the U.S. and internationally.

Answer 80

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

While the definitions differ, the principle is generally the same in the U.S. and internationally.

Question 81

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

While the definitions differ, the pri_____e is generally the same in the U.S. and internationally.

Answer 81

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

While the definitions differ, the principle is generally the same in the U.S. and internationally.

Question 82

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

While the definitions differ, the principle is generally the s___ in the U.S. and internationally.

Answer 82

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk)

is also required to be incorporated into the fair value measurement.

While the definitions differ, the principle is generally the same in the U.S. and internationally.

Question 83

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk) is also required to be incorporated into the fair value measurement.

While the definitions differ, the principle is generally the same in the U.S. and in_________lly.

Answer 83

Accounting for Derivative Instruments

Non-performance risk or the risk that an obligation will not be fulfilled (also known as credit risk) is also required to be incorporated into the fair value measurement.

While the definitions differ, the principle is generally the same in the U.S. and internationally.

Question 84

What is non-performance risk?

Answer 84

What is non-performance risk?

Non-performance risk = The risk that an obligation will not be fulfilled

(also known as credit risk)

Question 85

What is non-performance risk?

Answer 85

What is non-performance risk?

Non-performance risk = Credit Risk

Question 86

What is credit risk?

Answer 86

What is credit risk?

Credit Risk = The risk that an obligation will not be fulfilled

Question 87

The risk that an obligation will not be fulfilled is

Answer 87

The risk that an obligation will not be fulfilled is

= Credit Risk

= Non-performance risk

Question 88

What is credit risk?

Answer 88

What is credit risk?

Credit Risk = The risk that an obligation will not be fulfilled

Question 89

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between the derivative instrument which is measured at fair value, and the underlying exposure being hedged, as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Answer 89

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between the derivative instrument which is measured at fair value, and the underlying exposure being hedged, as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 90

Non-performance risk =

Answer 90

Non-performance risk = Credit Risk

Question 91

Hedge Accounting

Accounting for de________ instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Answer 91

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Question 92

Hedge Accounting

Accounting for derivative instruments at f___ value creates a common issue for organizations that hedge risks using such instruments.

Answer 92

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Question 93

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that h___e risks using such instruments.

Answer 93

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Question 94

Hedge Accounting

Accounting for derivative instruments at fair value creates a common is___ for organizations that hedge risks using such instruments.

Answer 94

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Question 95

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such org________s may face an accounting mismatch between

1) the derivative instrument

Answer 95

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument

Question 96

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mis______ between

1) the derivative instrument

Answer 96

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument

Question 97

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the de________ instrument which is measured at fair value,

Answer 97

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value,

Question 98

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative ins_________ which is measured at fair value,

Answer 98

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 99

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is me________ at fair value,

Answer 99

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value,

Question 100

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at f___ value,

Answer 100

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value,

Question 101

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and
2) the un______ng exposure being hedged,

Answer 101

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and
2) the underlying exposure being hedged,

Question 102

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and
2) the underlying ex________ being hedged,

Answer 102

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and
2) the underlying exposure being hedged,

Question 103

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and
2) the underlying exposure being h___ed,

Answer 103

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and
2) the underlying exposure being hedged,

Question 104

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying ex_____es are recognized assets or liabilities

Answer 104

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities

Question 105

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are re______ed assets or liabilities

Answer 105

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities

Question 106

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as ty_____ly underlying exposures are recognized assets or liabilities

Answer 106

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities

Question 107

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized as___s or liabilities

Answer 107

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities

Question 108

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or lia_____ies that are accounted for

Answer 108

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for

Question 109

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are ac_____ted for
on a cost or an amortized cost basis,

Answer 109

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,

Question 110

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a c___ or an amortized cost basis,

Answer 110

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,

Question 111

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an am______ed cost basis,

Answer 111

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,

Question 112

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized c___t basis,

Answer 112

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,

Question 113

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost b___s,
or future transactions

Answer 113

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions

Question 114

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or fu____ transactions that have yet to be recognized.

Answer 114

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 115

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future tr_________s that have yet to be recognized.

Answer 115

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 116

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be re_______ed.

Answer 116

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 117

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting m________h between

1) the der_______ instrument which is measured at fair value, and

2) the underlying exp______ being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Answer 117

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 118

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at f___ va___, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Answer 118

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 119

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a c___ or an amortized cost b___s,
or future transactions that have yet to be recognized.

Answer 119

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 120

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or fu____ transactions that have yet to be re_______ed.

Answer 120

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 121

Hedge Accounting

Accounting for derivative instruments at fair value creates a common is____ for organizations that h___e risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Answer 121

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for
on a cost or an amortized cost basis,
or future transactions that have yet to be recognized.

Question 122

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This ac_______ing mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Answer 122

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 123

Hedge Accounting

This accounting mi______ results in volatility in the financial statements

Answer 123

Hedge Accounting

This accounting mismatch results in volatility in the financial statements

Question 124

Hedge Accounting

This accounting mismatch results in vo_____ty in the financial statements

Answer 124

Hedge Accounting

This accounting mismatch results in volatility in the financial statements

Question 125

Hedge Accounting

This accounting mismatch results in volatility in the fi_______ statements as there is no offset

Answer 125

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset

Question 126

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is n_ offset to the change

Answer 126

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change

Question 127

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no of___t to the change in the fair value

Answer 127

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value

Question 128

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the ch_____ in the fair value of the derivative instrument.

Answer 128

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 129

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the f___ value of the derivative instrument.

Answer 129

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 130

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the de_______ instrument.

Answer 130

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 131

Hedge Accounting

Accounting for derivative instruments at fair value creates a co_____ issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This accounting mi_______ results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Answer 131

Hedge Accounting

Accounting for derivative instruments at fair value creates a common issue for organizations that hedge risks using such instruments.

Specifically, such organizations may face an accounting mismatch between

1) the derivative instrument which is measured at fair value, and

2) the underlying exposure being hedged,
as typically underlying exposures are recognized assets or liabilities that are accounted for on a cost or an amortized cost basis, or future transactions that have yet to be recognized.

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Question 132

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Hedge ac______ing provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 132

Hedge Accounting

This accounting mismatch results in volatility in the financial statements as there is no offset to the change in the fair value of the derivative instrument.

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 133

Hedge Accounting

He___ accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 133

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 134

Hedge Accounting

Hedge accounting provides this off___ by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 134

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 135

Hedge Accounting

Hedge accounting provides this offset by eff______ly eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 135

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 136

Hedge Accounting

Hedge accounting provides this offset by effectively el______ing/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 136

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 137

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ r____cing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 137

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 138

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mis____ through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 138

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 139

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. F___ V____ Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Answer 139

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 140

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. C___ F____ Hedge
3. Net Investment Hedge

Answer 140

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 141

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. N__ In________ Hedge

Answer 141

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

Question 142

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Answer 142

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Question 143

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is ac_____ed by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Answer 143

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Question 144

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by ac______ing for the underlying exposure,

Answer 144

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure,

Question 145

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the un_____ing exposure,

Answer 145

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure,

Question 146

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exp_____, asset or liability

Answer 146

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability

Question 147

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, as___ or liability

Answer 147

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability

Question 148

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or lia_____y

Answer 148

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability

Question 149

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the h____ed item)

Answer 149

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

Question 150

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged i___)

Answer 150

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

Question 151

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by ad____ing the carrying value

Answer 151

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value

Question 152

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the c____ing value

Answer 152

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value

Question 153

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying va___ for changes in the hedged risk,

Answer 153

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

Question 154

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for c______s in the hedged risk,

Answer 154

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

Question 155

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged r___,

which would then offset,

Answer 155

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset,

Question 156

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then of___t, to the extent effective,

Answer 156

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective,

Question 157

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent eff______, the change in the fair value

Answer 157

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value

Question 158

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the ch____ in the fair value

Answer 158

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value

Question 159

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair v____ of the derivative instrument,

Answer 159

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Question 160

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the de______ instrument,

Answer 160

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Question 161

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by ac______ing for the un______ing exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Answer 161

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Question 162

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by ad_____ng the ca___ing value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Answer 162

Hedge Accounting

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

Question 163

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then off___, to the extent effective, the ch____ in the fair value of the derivative instrument,

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Answer 163

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 164

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Answer 164

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 165

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where ch_____ in the fair value of the derivative instrument are deferred in shareholders equity,

Answer 165

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity,

Question 166

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the f___ value of the derivative instrument are deferred in shareholders equity,

Answer 166

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity,

Question 167

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the de_______ instrument are deferred in shareholders equity,

Answer 167

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity,

Question 168

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are de____ed in shareholders equity,

Answer 168

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity,

Question 169

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in sh_______s equity, to the extent effective,

Answer 169

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

Question 170

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders e_____y, to the extent effective,

Answer 170

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

Question 171

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent eff_______,

until the underlying exposure impacts the income statement

Answer 171

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement

Question 172

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the un________ing exposure impacts the income statement

Answer 172

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement

Question 173

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying ex_______ impacts the income statement

Answer 173

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement

Question 174

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure im____s the income statement in the future,

Answer 174

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 175

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the in____ statement in the future,

Answer 175

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 176

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the fu____,

Answer 176

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 177

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where ch____s in the f___ value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Answer 177

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 178

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where ch____s in the fair value of the derivative instrument are d_____ed in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Answer 178

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 179

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in sha________s e___ty, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Answer 179

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 180

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the un_____ing exposure im____s the income statement in the future,

Answer 180

Hedge Accounting

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

Question 181

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Answer 181

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 182

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

NET INVESTMENT HEDGE

3. Through a N__ Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Answer 182

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 183

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net In__________ Hedge

which is a variation on a cash flow hedge,

Answer 183

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

Question 184

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a c__h flow hedge,

used to hedge foreign exchange risk

Answer 184

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk

Question 185

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge for____ exchange risk

Answer 185

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk

Question 186

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange r__k associated with net investments in foreign currency

Answer 186

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency

Question 187

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net inv________s in foreign currency denominated operations.

Answer 187

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 188

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign cur______y denominated operations.

Answer 188

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 189

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated ope_______s.

Answer 189

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 190

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a va_______n on a cash flow h___e,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Answer 190

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 191

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exc______e ri__ associated with net investments in foreign currency denominated operations.

Answer 191

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 192

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Answer 192

Hedge Accounting

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 193

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Answer 193

Hedge Accounting

Hedge accounting provides this offset by effectively eliminating/ reducing the accounting mismatch through one of three ways:

1. Fair Value Hedge
2. Cash Flow Hedge
3. Net Investment Hedge

FAIR VALUE HEDGE

1. Through a Fair Value Hedge,

which is achieved by accounting for the underlying exposure, asset or liability (typically referred to as the hedged item)

by adjusting the carrying value for changes in the hedged risk,

which would then offset, to the extent effective, the change in the fair value of the derivative instrument,

CASH FLOW HEDGE

2. Through a Cash Flow Hedge

where changes in the fair value of the derivative instrument are deferred in shareholders equity, to the extent effective,

until the underlying exposure impacts the income statement in the future,

NET INVESTMENT HEDGE

3. Through a Net Investment Hedge

which is a variation on a cash flow hedge,

used to hedge foreign exchange risk associated with net investments in foreign currency denominated operations.

Question 194

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the fair value of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

The hedged item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Measurement of Derivative Instrument
[ Change in Fair Value ] + / - –> Income Stmt

Measurement of Hedge Item
[ Change in Fair Value + / - –> Income Stmt
attributable to risk hedged ]

Answer 194

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the fair value of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

The hedged item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Measurement of Derivative Instrument
[ Change in Fair Value ] + / - –> Income Stmt

Measurement of Hedge Item
[ Change in Fair Value + / - –> Income Stmt
attributable to risk hedged ]

Question 195

Hedge Accounting

1. FAIR VALUE HEDGE

A F___ Value Hedge is used when an entity is looking to eliminate or reduce the exposure

Answer 195

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

Question 196

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an e___ty is looking to eliminate or reduce the exposure

Answer 196

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

Question 197

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eli______ or reduce the exposure

Answer 197

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

Question 198

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or re____ the exposure

that arises from changes in the fair value

Answer 198

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value

Question 199

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the ex_______

that arises from changes in the fair value

Answer 199

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value

Question 200

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from ch____s in the fair value

Answer 200

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value

Question 201

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair va___ of a financial asset or liability

Answer 201

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability

Question 202

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial a___t or liability

Answer 202

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability

Question 203

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or li____lity (or other eligible exposure)

Answer 203

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

Question 204

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to ch____s in a particular risk,

Answer 204

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk,

Question 205

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular r___, such as interest rate risk on a fixed rate debt instrument.

Answer 205

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 206

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as in_______ rate risk on a fixed rate debt instrument.

Answer 206

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 207

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate ri__ on a fixed rate debt instrument.

Answer 207

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 208

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fi__d rate debt instrument.

Answer 208

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 209

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate d__t instrument.

Answer 209

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 210

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt in________.

Answer 210

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 211

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eli_______ or reduce the ex________

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Answer 211

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 212

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from ch_____s in the fair va___ of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Answer 212

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 213

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to ch_____s in a particular ri__, such as interest rate risk on a fixed rate debt instrument.

Answer 213

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure

that arises from changes in the fair value of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

Question 214

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the fair value of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

The h___ed item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Answer 214

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the fair value of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

The hedged item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Question 215

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged i___ is permitted to measured at fair value each period

Answer 215

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

Question 216

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to m_______d at fair value each period

Answer 216

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

Question 217

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at f___ value each period

Answer 217

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

Question 218

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value e___ period

in respect of the hedged risk

Answer 218

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk

Question 219

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the h___ed risk (not for all risks),

Answer 219

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

Question 220

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged ri__ (not for all risks),

Answer 220

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

Question 221

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the h___ed item is normally measured at amortized cost.

Answer 221

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at amortized cost.

Question 222

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged i___ is normally measured at amortized cost.

Answer 222

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at amortized cost.

Question 223

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is no____lly measured at amortized cost.

Answer 223

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at amortized cost.

Question 224

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at am_____ed cost.

Answer 224

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at amortized cost.

Question 225

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at amortized c___.

Answer 225

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period

in respect of the hedged risk (not for all risks),

even if the hedged item is normally measured at amortized cost.

Question 226

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged it__ is permitted to measured at fair va___ each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Answer 226

Hedge Accounting

1. FAIR VALUE HEDGE

The hedged item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Question 227

Hedge Accounting

1. FAIR VALUE HEDGE

Any res___ing adjustment to the carrying amount of the hedged item

Answer 227

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item

Question 228

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adj________ to the carrying amount of the hedged item

Answer 228

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item

Question 229

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the ca___ing amount of the hedged item

Answer 229

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item

Question 230

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the he___d item related to the hedged risk is recognized in profit or loss,

Answer 230

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

Question 231

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged ri__ is recognized in profit or loss,

Answer 231

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

Question 232

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged it__ related to the hedged risk is recognized in profit or loss,

Answer 232

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

Question 233

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is re____ized in profit or loss,

Answer 233

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

Question 234

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in p___it or loss,

Answer 234

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

Question 235

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or l__s,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Answer 235

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Question 236

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a ch_____ normally would be recognized in Other Comprehensive Income (OCI)

Answer 236

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Question 237

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change no___lly would be recognized in Other Comprehensive Income (OCI)

Answer 237

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Question 238

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be re____ized in Other Comprehensive Income (OCI)

Answer 238

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Question 239

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (O__)

Answer 239

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Question 240

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comp________ Income (OCI)

Answer 240

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI)

Question 241

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI) –

for example
in the case of an in_________ classified as available for sale.

Answer 241

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI) –

for example
in the case of an instrument classified as available for sale.

Question 242

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI) –

for example
in the case of an instrument classified as av_______ for sale.

Answer 242

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI) –

for example
in the case of an instrument classified as available for sale.

Question 243

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI) –

for example
in the case of an instrument classified as available for s___.

Answer 243

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss,

even if such a change normally would be recognized in Other Comprehensive Income (OCI) –

for example
in the case of an instrument classified as available for sale.

Question 244

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged i___ related to the hedged risk is re____ized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Answer 244

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Question 245

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument c_____ied as available for sa__.

Answer 245

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Question 246

Hedge Accounting

1. FAIR VALUE HEDGE

Any re____ing adju_______ to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 246

Hedge Accounting

1. FAIR VALUE HEDGE

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 247

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 247

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 248

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Der_______ Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 248

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 249

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Inst________

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 249

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 250

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of He___ Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 250

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 251

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge I___

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 251

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 252

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to ri__ hedged ]

Answer 252

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 253

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk h___ed ]

Answer 253

Hedge Accounting

1. FAIR VALUE HEDGE

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 254

Hedge Accounting

1. FAIR VALUE HEDGE

A F__r Va___ He___ is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the fair value of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

The hedged item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Answer 254

Hedge Accounting

1. FAIR VALUE HEDGE

A Fair Value Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the fair value of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a fixed rate debt instrument.

The hedged item is permitted to measured at fair value each period in respect of the hedged risk (not for all risks), even if the hedged item is normally measured at amortized cost.

Any resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognized in profit or loss, even if such a change normally would be recognized in Other Comprehensive Income (OCI) – for example in the case of an instrument classified as available for sale.

Measurement of Derivative Instrument

[ Change in Fair Value ] + / - –> Income Statement

Measurement of Hedge Item

[ Change in Fair Value + / - –> Income Statement
attributable to risk hedged ]

Question 255

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion ) is recognized immediately in profit or loss.

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss (for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

The Cash Flow Hedge

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Answer 255

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion ) is recognized immediately in profit or loss.

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss (for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

The Cash Flow Hedge

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Question 256

Hedge Accounting

2. CASH FLOW HEDGE

A C__h Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Answer 256

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 257

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eli_____ or reduce the exposure

Answer 257

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure

Question 258

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the ex______ that arises from changes in the cash flows

Answer 258

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows

Question 259

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from ch____s in the cash flows

Answer 259

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of

Question 260

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the c__h flows of a financial asset or liability

Answer 260

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability

Question 261

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial as___ or liability (or other eligible exposure)

Answer 261

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

Question 262

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or li___lity (or other eligible exposure)

Answer 262

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

Question 263

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eli_____ exposure)

due to changes in a particular risk,

Answer 263

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk,

Question 264

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible ex______)

due to changes in a particular risk,

Answer 264

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk,

Question 265

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular ri__, such as interest rate risk on a floating rate debt instrument.

Answer 265

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 266

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to ch___es in a particular risk, such as interest rate risk on a floating rate debt instrument.

Answer 266

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 267

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as in______ rate risk on a floating rate debt instrument.

Answer 267

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 268

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a fl___ing rate debt instrument.

Answer 268

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 269

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating r___ debt instrument.

Answer 269

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 270

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate d__t instrument.

Answer 270

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure)

due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 271

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the c__h fl__s of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Answer 271

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 272

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial as___ or li___lity (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Answer 272

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

Question 273

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

The hedged i___ is accounted for under normal principles.

Answer 273

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

The hedged item is accounted for under normal principles.

Question 274

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is ac______ed for under normal principles.

Answer 274

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

Question 275

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under n_____l principles.

Answer 275

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

Question 276

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal pri_______s.

The hedging derivative instrument is measured at fair value each period

Answer 276

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period

Question 277

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The h___ing derivative instrument is measured at fair value each period

Answer 277

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period

Question 278

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative in_________ is measured at fair value each period

Answer 278

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period

Question 279

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging der_______ instrument is measured at fair value each period

Answer 279

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period

Question 280

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at f___ value each period

Answer 280

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period

Question 281

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each per___ however, the effective portion of the change in fair value is deferred in OCI

Answer 281

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI

Question 282

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the eff______ portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

Answer 282

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI

Question 283

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective por____ of the change in fair value is deferred in OCI

Answer 283

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI

Question 284

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the ch_____ in fair value is deferred in OCI

Answer 284

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI

Question 285

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is d______ed in OCI

Answer 285

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI

Question 286

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in O__ and presented within equity

Answer 286

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity

Question 287

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within e_____y (normally in a hedging reserve).

Answer 287

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

Question 288

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a h___ing reserve).

Answer 288

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

Question 289

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging re___ve).

Answer 289

Hedge Accounting

2. CASH FLOW HEDGE

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

Question 290

Hedge Accounting

2. CASH FLOW HEDGE

The hedging deri______ instrument is me____ed at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

Answer 290

Hedge Accounting

2. CASH FLOW HEDGE

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

Question 291

Hedge Accounting

2. CASH FLOW HEDGE

The hedging derivative instrument is measured at fair value each period however, the eff______ portion of the change in fair value is de___ed in OCI and presented within equity (normally in a hedging reserve).

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion ) is recognized immediately in profit or loss.

Answer 291

Hedge Accounting

2. CASH FLOW HEDGE

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion ) is recognized immediately in profit or loss.

Question 292

Hedge Accounting

2. CASH FLOW HEDGE

The diff_____e between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Answer 292

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Question 293

Hedge Accounting

2. CASH FLOW HEDGE

The difference bet____

the effective portion of the change in the fair value

Answer 293

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value

Question 294

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the eff______ portion of the change in the fair value

Answer 294

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value

Question 295

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the ch_____ in the fair value of the derivative hedging instrument

Answer 295

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

Question 296

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the f___ value of the derivative hedging instrument

Answer 296

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument .

Question 297

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the der_______ hedging instrument

Answer 297

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

Question 298

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging ins_________

and the full change in the fair value

Answer 298

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (

Question 299

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full ch____ in the fair value

Answer 299

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value

Question 300

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the f_ll change in the f___ value (the ineffective portion )

Answer 300

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

Question 301

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineff_____ portion )

is recognized immediately in profit or loss.

Answer 301

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Question 302

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is re______ed immediately in profit or loss.

Answer 302

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Question 303

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized im______ly in profit or loss.

Answer 303

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Question 304

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in pr___t or loss.

Answer 304

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Question 305

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or l__s.

Answer 305

Hedge Accounting

2. CASH FLOW HEDGE

The difference between

the effective portion of the change in the fair value of the derivative hedging instrument

and the full change in the fair value (the ineffective portion )

is recognized immediately in profit or loss.

Question 306

Hedge Accounting

2. CASH FLOW HEDGE

The diff________ between the eff_______ portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

Answer 306

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

Question 307

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full ch_____ in the fair value (the inef_______ portion) is recognized immediately in profit or loss.

Answer 307

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

Question 308

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

= The difference is recognized immediately in profit or loss.

Answer 308

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

= The difference is recognized immediately in profit or loss.

Question 309

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

= The difference is recognized immediately in profit or loss.

A Cash Flow Hedge only has me____ed ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Answer 309

Hedge Accounting

2. CASH FLOW HEDGE

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion) is recognized immediately in profit or loss.

= The difference is recognized immediately in profit or loss.

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Question 310

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineff_________

Answer 310

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

Question 311

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the ch_____ in the fair value of the derivative instrument

Answer 311

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

Question 312

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the f__r value of the derivative instrument

exceeds the change in the present value

Answer 312

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value

Question 313

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the der______ instrument

exceeds the change in the present value

Answer 313

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value

Question 314

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exc___s the change in the present value

Answer 314

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value

Question 315

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the ch_____ in the present value of the future cash flows

Answer 315

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows

Question 316

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the pre____ value of the future cash flows

Answer 316

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows

Question 317

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the fu____ cash flows of the hedged item

Answer 317

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item

Question 318

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future c__h flows of the hedged item

Answer 318

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item

Question 319

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the h___ed item/ exposure

Answer 319

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

Question 320

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged i___/ exposure

Answer 320

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

Question 321

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exp_____

(referred to as an “over hedge”).

Answer 321

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “over hedge”).

Question 322

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “ov__ hedge”).

Answer 322

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “over hedge”).

Question 323

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “o__r hedge”).

Answer 323

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “over hedge”).

Question 324

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “over h___e”).

Answer 324

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness

where the change in the fair value of the derivative instrument

exceeds the change in the present value of the future cash flows of the hedged item/ exposure

(referred to as an “over hedge”).

Question 325

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge o__y has me____ed ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Answer 325

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Question 326

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has me_____ed ineff______ess where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Answer 326

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Question 327

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness where the ch_____ in the fair value of the derivative instrument exc___s the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Answer 327

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

Question 328

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the fu____ c__h flows of the hedged item/ exposure (referred to as an “over hedge”).

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss (for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

Answer 328

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss (for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

Question 329

Hedge Accounting

2. CASH FLOW HEDGE

The cha___ in the fair value of the hedging instrument that is deferred in OCI

Answer 329

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made
or when the payment associated with an anticipated transaction occurs).

Question 330

Hedge Accounting

2. CASH FLOW HEDGE

The change in the f__ value of the hedging instrument that is deferred in OCI

Answer 330

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

Question 331

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the h___ing instrument that is deferred in OCI

Answer 331

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

Question 332

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging inst_______ that is deferred in OCI

Answer 332

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

Question 333

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is de____ed in OCI

Answer 333

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

Question 334

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in O__

is reclassified to profit or loss
at a future date

Answer 334

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date

Question 335

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is recl_____ed to profit or loss
at a future date

Answer 335

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date

Question 336

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to pro___ or loss
at a future date

Answer 336

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date

Question 337

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a fut___ date

Answer 337

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date

Question 338

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future d___
when the hedged item affects profit or loss

Answer 338

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

Question 339

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged it__ affects profit or loss

Answer 339

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

Question 340

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item af____s profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made )

Answer 340

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made )

Question 341

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or l__s

(for example,
when the interest payment on a floating rate debt instrument is made
or when the payment associated with an anticipated transaction occurs).

Answer 341

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made
or when the payment associated with an anticipated transaction occurs).

Question 342

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating r___ debt instrument is made
or when the payment associated with an anticipated transaction occurs).

Answer 342

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made
or when the payment associated with an anticipated transaction occurs).

Question 343

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made
or when the payment associated with an anticipated tran______ occurs).

Answer 343

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI

is reclassified to profit or loss
at a future date
when the hedged item affects profit or loss

(for example,
when the interest payment on a floating rate debt instrument is made
or when the payment associated with an anticipated transaction occurs).

Question 344

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is de____ed in OCI is rec_____ied to profit or loss at a future date when the hedged item affects profit or loss

(for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

The Cash Flow Hedge

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Answer 344

Hedge Accounting

2. CASH FLOW HEDGE

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss

(for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

The Cash Flow Hedge

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Question 345

Hedge Accounting

2. CASH FLOW HEDGE

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently trans____ed out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Answer 345

Hedge Accounting

2. CASH FLOW HEDGE

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income SStatement  tmt  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Question 346

Hedge Accounting

2. CASH FLOW HEDGE

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of O__ based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Answer 346

Hedge Accounting

2. CASH FLOW HEDGE

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Question 347

Hedge Accounting

2. CASH FLOW HEDGE

Measurement of Deri_____

[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Answer 347

Hedge Accounting

2. CASH FLOW HEDGE

Measurement of Derivative

[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Question 348

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion ) is recognized immediately in profit or loss.

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss (for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

The Cash Flow Hedge

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Answer 348

Hedge Accounting

2. CASH FLOW HEDGE

A Cash Flow Hedge is used when an entity is looking to eliminate or reduce the exposure that arises from changes in the cash flows of a financial asset or liability (or other eligible exposure) due to changes in a particular risk, such as interest rate risk on a floating rate debt instrument.

The hedged item is accounted for under normal principles.

The hedging derivative instrument is measured at fair value each period however, the effective portion of the change in fair value is deferred in OCI and presented within equity (normally in a hedging reserve).

The difference between the effective portion of the change in the fair value of the derivative hedging instrument and the full change in the fair value (the ineffective portion ) is recognized immediately in profit or loss.

A Cash Flow Hedge only has measured ineffectiveness where the change in the fair value of the derivative instrument exceeds the change in the present value of the future cash flows of the hedged item/ exposure (referred to as an “over hedge”).

The change in the fair value of the hedging instrument that is deferred in OCI is reclassified to profit or loss at a future date when the hedged item affects profit or loss (for example, when the interest payment on a floating rate debt instrument is made or when the payment associated with an anticipated transaction occurs).

The Cash Flow Hedge

Measurement of Derivative
[ Change in Fair Value ]
Recognition

 Effective Portion      -->         OCI   (SHs’ Equity)   

                                                         I
                                                        V*

  Ineffective Portion  -->         Income Statement  

*Amounts are subsequently transferred out of OCI based on the same timing as the hedged item impacts income (interest income, interest expenses, etc.)

Question 349

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Similarly, when non-derivative instrument is used, the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

The Net Investment Hedge

Measurement of Derivative

[Change in Fair Value]

	             Recognition                [Net Investment 
                                                      in Foreign Operation]

1) Effective -to– (SHs’ Equity) -from- Foreign Currency
Portion Gain / Loss

                                l
                               V*

2) Ineffective –> Income Statement
Portion

*Amounts are subsequently transferred out of Shareholders’ Equity in the same period during which corresponding exchange gains or losses arising from the translation of the financial statements of the foreign operation are recognized in the net income.

Answer 349

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Similarly, when non-derivative instrument is used, the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

The Net Investment Hedge

Measurement of Derivative

[Change in Fair Value]

	             Recognition                [Net Investment 
                                                      in Foreign Operation]

1) Effective -to– (SHs’ Equity) -from- Foreign Currency
Portion Gain / Loss

                                l
                               V*

2) Ineffective –> Income Statement
Portion

*Amounts are subsequently transferred out of Shareholders’ Equity in the same period during which corresponding exchange gains or losses arising from the translation of the financial statements of the foreign operation are recognized in the net income.

Question 350

Hedge Accounting

3. NET INVESTMENT HEDGE

A N__ Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Answer 350

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Question 351

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of fo_____ currency cash flow hedge

Answer 351

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

Question 352

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign cur____y cash flow hedge

Answer 352

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

Question 353

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency c__h flow hedge

that is used to eliminate or reduce the foreign currency exposure

Answer 353

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

Question 354

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash fl__ hedge

that is used to eliminate or reduce the foreign currency exposure

Answer 354

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

Question 355

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eli_______ or reduce the foreign currency exposure

Answer 355

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

Question 356

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency ex_______

that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Answer 356

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Question 357

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

that arises from an entity’s Net Investment in a For____ Operation (NIFO).

Answer 357

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Question 358

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

that arises from an entity’s Net Investment in a Foreign Operation (NI__).

Answer 358

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge

that is used to eliminate or reduce the foreign currency exposure

that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Question 359

What is NIFO?

Answer 359

NIFO = Net Investment in a Foreign Operation

Question 360

N___ = Net Investment in a Foreign Operation

Answer 360

NIFO = Net Investment in a Foreign Operation

Question 361

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency c__h flow h___e that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

Answer 361

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

Question 362

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each pe____ of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

Answer 362

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

Question 363

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NI__) into the parent financial statements,

Answer 363

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

Question 364

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the pa____ financial statements,

Answer 364

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

Question 365

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent fin______ statements,

a foreign currency gain or loss is recognized in shareholders’ equity

Answer 365

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

Question 366

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a fo______ currency gain or loss is recognized in shareholders’ equity

Answer 366

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

Question 367

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency g__n or loss is recognized in shareholders’ equity

Answer 367

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

Question 368

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is re____ized in shareholders’ equity

(part of the cumulative translation account).

Answer 368

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

(part of the cumulative translation account).

Question 369

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in sh________s’ equity

(part of the cumulative translation account).

Answer 369

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

(part of the cumulative translation account).

Question 370

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

(part of the cumu______ translation account).

Answer 370

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

(part of the cumulative translation account).

Question 371

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

(part of the cumulative translation ac_____t).

Answer 371

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the Net Investment in a Foreign Operation (NIFO) into the parent financial statements,

a foreign currency gain or loss is recognized in shareholders’ equity

(part of the cumulative translation account).

Question 372

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon cons_______ each period of the NIFO into the pa____ financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

Answer 372

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

Question 373

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the NIFO into the parent financial statements, a foreign cu_____y gain or loss is recognized in shareholders’ e____y (part of the cumulative translation account).

Answer 373

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

Question 374

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is re______ed in sha_______s’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Answer 374

Hedge Accounting

3. NET INVESTMENT HEDGE

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Question 375

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net In__________ Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Answer 375

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Question 376

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or red___ this volatility in shareholders’ equity.

Answer 376

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Question 377

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this v______ty in shareholders’ equity.

Answer 377

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Question 378

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ e___ty.

Answer 378

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Question 379

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment H___e can be used to eli______ or reduce this volatility in shareholders’ equity.

Answer 379

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

Question 380

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this vo_____y in sha_______s’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

Answer 380

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

Question 381

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging in_________ in a Net Investment Hedge can either be a derivative instrument

Answer 381

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument

Question 382

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a de_______ instrument (such as a foreign exchange forward contract)

Answer 382

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

Question 383

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange for____ contract)

Answer 383

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

Question 384

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exc_____ forward contract)

Answer 384

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

Question 385

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward con____)

or a non-derivative instrument

Answer 385

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument

Question 386

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative ins_______

Answer 386

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument

Question 387

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-de________ instrument (such as a foreign currency denominated debt instrument),

Answer 387

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

Question 388

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated d__t instrument),

Answer 388

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

Question 389

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt inst_______),

Answer 389

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

Question 390

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency deno_____ed debt instrument),

or a combination of a derivative and non-derivative

Answer 390

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative

Question 391

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a com________ of a derivative and non-derivative under international accounting principles.

Answer 391

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Question 392

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under inte_______ accounting principles.

Answer 392

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Question 393

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting pri_____s.

Answer 393

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Question 394

Hedge Accounting

3. NET INVESTMENT HEDGE

The h___ing inst_______ in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Answer 394

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Question 395

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a der______ instrument (such as a foreign exchange forward contract)

or a non-der______ instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Answer 395

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract)

or a non-derivative instrument (such as a foreign currency denominated debt instrument),

or a combination of a derivative and non-derivative under international accounting principles.

Question 396

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a comb_____ of a derivative and non-derivative under international acc____ing principles.

Answer 396

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

Question 397

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When deri_____ hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

Answer 397

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 398

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the eff_____ portion of the change in the fair value of the instrument is recognized in equity.

Answer 398

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 399

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective po_____ of the change in the fair value of the instrument is recognized in equity.

Answer 399

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 400

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the ch_____ in the fair value of the instrument is recognized in equity.

Answer 400

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 401

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the f___ value of the instrument is recognized in equity.

Answer 401

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 402

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the ins________ is recognized in equity.

Answer 402

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 403

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is re______zed in equity.

Answer 403

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 404

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in e__ity.

Answer 404

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used,
the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 405

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effe_____ portion of the change in the fair value of the instrument is rec_____ed in equity.

Answer 405

Hedge Accounting

3. NET INVESTMENT HEDGE

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

Question 406

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ine______ portion is recognized immediately in profit or loss.

Answer 406

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Question 407

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is re____ized immediately in profit or loss.

Answer 407

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Question 408

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized im_______ly in profit or loss.

Answer 408

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Question 409

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in p___it or loss.

Answer 409

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Question 410

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Similarly, when non-deri_______ instrument is used, the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

Answer 410

Hedge Accounting

3. NET INVESTMENT HEDGE

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Similarly, when non-derivative instrument is used, the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

Question 411

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instr______ is used,

the foreign currency translation gain or loss is recognized in equity

Answer 411

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity

Question 412

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the for____ currency translation gain or loss is recognized in equity

Answer 412

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity

Question 413

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation g___ or loss is recognized in equity (as opposed to profit or loss).

Answer 413

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

Question 414

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is rec______ed in equity
(as opposed to profit or loss).

Answer 414

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity
(as opposed to profit or loss).

Question 415

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in e__ity
(as opposed to profit or loss).

Answer 415

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity
(as opposed to profit or loss).

Question 416

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity
(as o___sed to profit or loss).

Answer 416

Hedge Accounting

3. NET INVESTMENT HEDGE

Similarly, when non-derivative instrument is used,

the foreign currency translation gain or loss is recognized in equity
(as opposed to profit or loss).

Question 417

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Similarly, when non-derivative instrument is used, the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

Answer 417

Hedge Accounting

3. NET INVESTMENT HEDGE

A Net Investment Hedge is a specific type of foreign currency cash flow hedge that is used to eliminate or reduce the foreign currency exposure that arises from an entity’s Net Investment in a Foreign Operation (NIFO).

Upon consolidation each period of the NIFO into the parent financial statements, a foreign currency gain or loss is recognized in shareholders’ equity (part of the cumulative translation account).

A Net Investment Hedge can be used to eliminate or reduce this volatility in shareholders’ equity.

The hedging instrument in a Net Investment Hedge can either be a derivative instrument (such as a foreign exchange forward contract) or a non-derivative instrument (such as a foreign currency denominated debt instrument), or a combination of a derivative and non-derivative under international accounting principles.

When derivative hedging instrument is used, the effective portion of the change in the fair value of the instrument is recognized in equity.

The ineffective portion is recognized immediately in profit or loss.

Similarly, when non-derivative instrument is used, the foreign currency translation gain or loss is recognized in equity (as opposed to profit or loss).

Question 418

Hedge Accounting

The Net Investment Hedge

Measurement of Derivative

[Change in Fair Value]

	             Recognition                [Net Investment 
                                                      in Foreign Operation]

1) Effective -to– (SHs’ Equity) -from- Foreign Currency
Portion Gain / Loss

                                l
                               V*

2) Ineffective –> Income Statement
Portion

*Amounts are subsequently transferred out of Shareholders’ Equity in the same period during which corresponding exchange gains or losses arising from the translation of the financial statements of the foreign operation are recognized in the net income.

Answer 418

Hedge Accounting

The Net Investment Hedge

Measurement of Derivative

[Change in Fair Value]

	             Recognition                [Net Investment 
                                                      in Foreign Operation]

1) Effective -to– (SHs’ Equity) -from- Foreign Currency
Portion Gain / Loss

                                l
                               V*

2) Ineffective –> Income Statement
Portion

*Amounts are subsequently transferred out of Shareholders’ Equity in the same period during which corresponding exchange gains or losses arising from the translation of the financial statements of the foreign operation are recognized in the net income.