International Finance and Accounting Handbook

4.The forecast side of a CF hedge is no longer probable (Paragraph 33). Any amounts recorded in AOCI related to the forecast er ...

5.Voluntary termination by the company (Paragraph 25.c. for FV hedges and Paragraph 32.c for CF hedges). If an FV hedge, then a ...

sues, E7 and E8, the following items must be specified in the hedge documentation at the inception of the hedge: 1.Risk manageme ...

If the effectiveness of a hedge with an option contract is assessed based on changes in the option’s intrinsic value (IV), the ...

8.Retrospective Assessment Testing Frequency (Paragraph 20.b. and Paragraph 28.b.). Determines how frequently the retrospective ...

These are the basic rules of the game, and like any game, there’s no point in ar- guing about the rules—it’s how you play with t ...

greater than some agreed-upon parameter, say 80% (in words, the volatility of the po- sition has been reduced by the hedge by 80 ...

1.The excluded amount, if any, per the hedge documentation, which goes to P&L. 2.The ineffective amount is calculated using ...

If it is an FV hedge, the swap is fully marked-to-market on the balance sheet, with an offset to earnings. At the same time, the ...

earnings. In Paragraph 20(c)(1), the FASB states, “A combination of options (e.g., an interest rate collar) entered into contemp ...

for effectiveness testing between the actual option and a “hypothetical derivative” that does satisfy all of the four G20 condit ...

forecast represents the first x dollars (or yen or whatever) occurring in the month. Thus, if there is a forecast shortfall in J ...

The documented hedging objectives are supported by the written risk manage- ment strategy. AOCI related to hedges of sales and ...

rency-equivalent cash flows, calculated on a forward rate basis, attributable to changes in the JPY/USD foreign currency exchang ...

U.S. Tax Documentation Requirements Optimal documentation to be filled in by HedgeCo’s Tax Department. B. PERFECT INTEREST RATE ...

Prospective and Retrospective Effectiveness Test/Measurement of Ineffectiveness The critical terms of the Hedged Item and the He ...

Financial Accounting Standards Board. Statement of Comprehensive Income, Statement of Fi- nancial Accounting Standards No. 130. ...

20 • 1 CHAPTER 20 ACCOUNTING FOR THE EFFECTS OF INFLATION Harold E. Wyman Florida International University CONTENTS 20.1 Inflati ...

nations generally have less inflation than other countries. Notice that although most of the Latin American countries have signi ...

(c) Sales and purchases take place at prices that compensate for the expected loss of purchasing power during the credit period, ...