Derivative instruments and investment classification

Assignment Help Accounting Basics
Reference no: EM1344731

a) Write down the differences between traditional and derivative instruments. Why do companies use derivative instruments? Are derivatives a good investment?

b) How do the various classifications of investments affect financial statements? What is the rationale behind the different accounting methods for the various investment classifications? Which is more important when determining the accounting method for securities, influence, or ownership? Explain why.

Reference no: EM1344731

Questions Cloud

Airbus plant relocation : This week, Airbus announced it was building new plant in Alabama. Can you aid me in answering the following questions based on information in conjunction with Foreign Direct Investment.
Identify 5 strategies before investing money : An investor has many choices that need to be made before investing his or her money. Identify 5 strategies that require to be reviewed before an investor can reach his or her personal aims.
What is the speed of the car : How fast must the car be travelling just as it leaves the cliff in order to clear the river and land safely on the opposite side.
Cash flow from operations in a business : Which is most important to the business and why and what are the consequences a company may face if either of these is ignored?
Derivative instruments and investment classification : Write down the differences between traditional and derivative instruments. Why do companies use derivative instruments? Are derivatives a good investment?
What is the speed vfinal of the electron : You are standing 2.5 {rm m} straight in front of one of the two loudspeakers. They are 3 {rm m} apart and both are playing a 686 {rm Hz} tone in phase. As you begin to walk directly away from the speaker, at what distances from the speaker do you ..
Describe method to execute account harvesting : Describe the threat of account harvesting. Suggest a method to execute an account harvesting attack on a Windows platform.
How the string makes a 45 degree angle with the beam : The pulley is located so that the string makes a 45 degree angle with the beam. The beam is uniform, 5 meters long, and has weight. The professor stands 2 meters from the pivot point and has weight.
Evaluate what was the united brands net income after tax : Federal income tax: united brands corporation just completed their latest fiscal year the firm had sales - Evaluate what was the United Brands net income after tax

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd