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CPATx
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Joined: 26 Apr 2009
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Posts: 58

Posted: 25 May 2009 at 10:39 \| IP Logged

Guys,

Where are you all Studying fro headges...

I dont see a section in Becker could you please tell me the chapter number....

Thanks.!

jay_usa
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Joined: 16 Dec 2007
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Posted: 25 May 2009 at 11:17 \| IP Logged

Its Chapter 7 - ( under heading Financial instruments)

specifically Accounting for Derivative instruments and Hedges

Thanks

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Jay CPA,CGMA,CITP,MBA

CPATx
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Joined: 26 Apr 2009
Location: United States
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Posts: 58

Posted: 25 May 2009 at 11:25 \| IP Logged

I see a lot of people asking questions about it.. I dont remember seeing any questions...

Could someone please post a good example....

jay_usa
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Joined: 16 Dec 2007
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Posted: 25 May 2009 at 12:17 \| IP Logged

There are several questions on this, but one good example is below :

A change in the fair value of a derivative qualified as a cash flow hedge is determined to be either effective in offsetting a change in the hedged item or ineffective in offsetting such a change. 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?

    Effective portion in    Ineffective portion in

a.    Current income    Current income
b.    Current income    Other comprehensive income
c.    Other comprehensive income    Current income
d.    Other comprehensive income    Other comprehensive income

Try this and see if you can crack this.

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Jay CPA,CGMA,CITP,MBA

CPATx
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Joined: 26 Apr 2009
Location: United States
Online Status: Offline
Posts: 58

Posted: 25 May 2009 at 13:00 \| IP Logged

I saw that one but I am thinking about numerical problems.....

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