When recording the value of a purchase denominated in a foreign currency, the company is required to use the spot rate when payment is made, as long as it is made 30 days or more in the future.

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The company is required to use the spot rate on the date of the transaction, not on the date of payment. Additionally, the 30-day rule only applies if the transaction is not designated as a hedge.

When Recording the Value of a Purchase Denominated in a Foreign