ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS AND HEDGING FOREIGN EXCHANGE RISK
LEARNING OBJECTIVES
Distinguish between the terms “measured” and “denominated.”
Describe what is meant by a foreign currency transaction.
Understand some of the more common foreign currency transactions.
Identify three stages of concern to accountants for foreign currency transactions, and explain the steps used to translate foreign currency transactions for each stage.
Describe a forward exchange contract.
Explain the use of forward contracts as a hedge of an unrecognized firm commitment.
Identify some of the common situations in which a forward exchange contract can be used as a hedge.
Describe a derivative ...
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