Hedging Recognized Asset, Liability, Available for Sale, or Foreign Operations Flashcards
1
Q
What are the categories for hedge accounting- Foreign Currency Transactions?
A
`1) Foreign Currency denominated asset or liability (fair value or cash flow hedge)
2) Foreign currency denominated AFS security (fair value hedge)
3) Net investment in foreign operations (fair value hedge but the effective portion goes to OCI)
2
Q
When a company has a foreign subsidiary which records it’s books in FC, where does that translation adjustment get booked?
A
Other comprehensive income
