A discount or premium on a forward contract is deferred and included in the measurement of the related foreign currency transaction if the contract is classified as a:
A) hedge of a net investment in a foreign entity.
B) hedge of an exposed asset or liability position.
C) hedge of an identifiable foreign currency commitment.
D) contract acquired to speculate in the movement of exchange rates.

Question

Quizplus · Accepted Answer

The Answer of A discount or premium on a forward contract is deferred and included in the measurement of the related foreign currency transaction if the contract is classified as a:
A) hedge of a net investment in a foreign entity.
B) hedge of an exposed asset or liability position.
C) hedge of an identifiable foreign currency commitment.
D) contract acquired to speculate in the movement of exchange rates.

A Discount or Premium on a Forward Contract Is Deferred