Which one of the following is not an example of hedge accounting for a U.S. company?
A) A translation gain or loss on an international subsidiary is reported in other comprehensive income; changes in the value of the related hedge are also reported in other comprehensive income.
B) Changes in euro-denominated receivables are reported in income; changes in the value of the related hedge are also reported in income.
C) Changes in the value of a hedge of a forecasted sale denominated in euros are reported in other comprehensive income until the sale is made; the sale itself is reported as revenue when the sale is made.
D) Changes in the value of a euro-denominated purchase order are reported in income; changes in the value of the related hedge are also reported in income.
Correct Answer:
Verified
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