What is the required adjustment to the carrying value of the forward contract at the company's year-end?
A) CDN$300 decrease.
B) CDN$375 increase.
C) CDN$300 increase.
D)Nil.

Question

Quizplus · Accepted Answer

Since the forward rate is lower than the spot rate at year-end, the carrying value of the forward contract decreases. Thus, the required adjustment would be a CDN$300 decrease.

What Is the Required Adjustment to the Carrying Value of the Forward