Multiple Choice
Which of the following is not an example of a cash flow hedge?
A) a forward contract to buy US$ hedging recognised borrowings in US$.
B) a forward contract to sell US$ hedging a highly probable sale of inventory in US$.
C) a forward contract to buy US$ hedging future interest payments on variable rate debt in US$.
D) a forward contract to buy US$ hedging an unrecognised firm commitment to purchase goods in US$.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: At the end of the reporting period,
Q3: The main issue in accounting for foreign
Q4: Outback Limited, an Australian company, purchased machinery
Q5: Monetary items include the following except for:<br>A)
Q6: At the date of the transaction, a
Q7: The formal documentation of a hedging relationship
Q8: An exchange difference is 'realised':<br>A) on initial
Q9: AASB 121 requires which of the following
Q10: The Australian Financial News quoted A$1.00 equals
Q11: A forward contact to buy US$450 000