ACT 510 CSU Global Week 5 International Accounting and US GAAP Paper

Get perfect grades by consistently using Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20

Order a Similar Paper Order a Different Paper

earning Outcomes for this Module Reminder:

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now
  1. Analyze the accounting required for hedging an unrecognized foreign currency firm commitment with a fair value hedge under the US GAAP.
  2. Analyze the accounting required for hedging an unrecognized foreign currency firm commitment with a cash value hedge under the US GAAP.
  3. Evaluate the accounting required when a U.S. company speculates with a forward exchange contract including hedge effectiveness under the US GAAP.
  4. Evaluate other financial instruments used by U.S. multinational companies including forwards, futures, options, and swaps, including examples of options related to cash flow and fair value hedges under the US GAAP.
  5. Analyze the financial reporting and disclosure requirements about the fair value of financial instruments under the US GAAP and the differences between the US GAAP and IFRS.

With regards to your Assignment performed in Connect, and in general what you read and learned about in general in this Module, answer the following questions.

You should refer to the FASB Accounting Standards Codification (FASB ASC), specifically, when answering some of the questions below:

  1. Your Company has suddenly and unexpectedly had a large sale and receivable denominated in Euros, The payment for the sale will be received in Euros according to the terms of the contract with the customer in 30 days. Would you recommend to the Controller executing a forward exchange contract in this situation? Why or why not? Be specific.
  2. A cash flow hedge is a hedge of an exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction, that is attributable to a particular risk. It is possible to only hedge the risks associated with a portion of an asset, liability, or forecasted transaction, as long as the effectiveness of the related hedge can be measured.

Explain the accounting for a cash flow hedge for the effective and the ineffective portion of any gain or loss for the hedging item and the hedged item on the income statement and the statement of OCI.

For a cash flow hedge, when a hedging transaction relates to a forecasted transaction, when should any gains or losses be reclassified from OCI to earnings?

Finally, under what circumstances or situations should cash flow hedges be terminated? Be specific.

  1. A fair value hedge is a hedge of the exposure to changes in the fair value of an asset or liability. It is used to minimize fluctuations in earnings caused by changes in fair values from one period to another period.

Explain how the accounting for a fair value hedge differs for the hedged item and for the hedging item compared to the accounting for a cash flow hedge. Be specific and include an example, if you need to, to explain the difference.

We offer the best essay writing services to students who value great quality at a fair price. Let us exceed your expectations if you need help with this or a different assignment. Get your paper completed by a writing expert today. Nice to meet you! Want 15% OFF your first order? Use Promo Code: FIRST15. Place your order in a few easy steps. It will take you less than 5 minutes. Click one of the buttons below.

Order a Similar Paper Order a Different Paper