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    Advanced Accounting Concepts and Practice
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    Exam 14: Using Derivatives to Manage Foreign Currency Exposures
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    In a Fair Value Hedge, Any FX Gain or Loss
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In a Fair Value Hedge, Any FX Gain or Loss

Question 242

Question 242

True/False

In a fair value hedge, any FX gain or loss on an FX forward used to hedge a firm commitment must be deferred until the transaction date.

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