A Discount or Premium on a Forward Contract Is Deferred

Multiple Choice

A discount or premium on a forward contract is deferred and included in the measurement of the related foreign currency transaction if the contract is classified as a:

A) hedge of a net investment in a foreign entity.
B) hedge of an exposed asset or liability position.
C) hedge of an identifiable foreign currency commitment.
D) contract acquired to speculate in the movement of exchange rates.