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dataris17
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| Posted: 08 Oct 2010 at 22:26 | IP Logged
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CPA-00951
A change in the fair value of a derivative qualified as a cash flow hedge is determined to be either effective or ineffective in offsetting a change in the hedged item. How should the effective and ineffective portions of the change in value of a derivative which qualifies as a cash flow hedge be reported in financial statements?
Answer - C
Effective portion in: Other Comp. Income
Ineffective portion in: Current Income
CPA-00945
Gains and losses from changes in the fair value of a derivative designated and qualified as a fair value hedge should be:
Answer - C
Recognized in current net income in the period in which the fair value of the derivative changes,
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Am I crazy or do those two questions totally contradict?
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dataris17
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| Posted: 08 Oct 2010 at 22:28 | IP Logged
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Nevermind, I think I finally see the distinction.
"Fair value hedge" vs. "Cash flow hedge"
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Pass before the end of 2010?
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REG - 8/27: 80!
FAR - 10/23: 88!
AUD - 11/29: 97!
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Virtuosobg
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What is a qualified derivative?
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Virtusoobg
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Topic: Becker Hedging Questions
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