Describe where firms report the revaluation amount

Assignment Help Financial Accounting
Reference no: EM13902082

VALUATION OF DERIVATIVES. GAAP classifies derivatives as (a) speculative investments, (b) fair value hedges, or (c) cash flow hedges. However, firms revalue all deriva- tives to market value each period regardless of the firm's reason for acquiring the derivatives. In addition to increasing or decreasing the derivative asset or liability, the revaluation amount affects net income immediately or other comprehensive income immediately and net income later. For each type of derivative, describe where firms report the revaluation amount on the financial statements.

Reference no: EM13902082

Questions Cloud

Calculate how fast the ships are approaching each other : Suppose at a given moment, Han Solo is travelling at 60 imperial units per minute and is 8 units away from the intersection and Darth Vader is traveling at 30 imperial units per minute and is 6 units away from the intersection. Calculate how fast ..
What amount of asset will be reported on the balance sheet : Given the following information, projected benefit obligation (PBO) and fair market value (FMV) of plan assets for Lee Company. What amount of asset or liability will be reported on the balance sheet at December 31, 2010?
Discuss the importance of using a national currency : Discuss the importance of using a national currency
Describe the sample space : A box contains three marbles - one red, one green, and one blue. Consider an experiment that consists of taking one marble from the box, then replacing it in the box and drawing a second marble from the box.
Describe where firms report the revaluation amount : GAAP classifies derivatives as speculative investments, fair value hedges, or cash flow hedges. For each type of derivative, describe where firms report the revaluation amount on the financial statements.
Uniform or triangular distributions are used in the absence : Uniform or triangular distributions are used in the absence of data
What are the three rock types : 1. What are the three rock types, and how are they formed? Where are they generally located? What are the attributes of their composition?
Discuss potential difficulties in interpreting results : A recent study yielded a positive correlation between breast-fed babies and scores on a vocabulary test taken at age 6. Discuss the potential difficulties in interpreting the results of this study.
Difference of acquisition cost and market value of inventory : How should differences between acquisition cost and the market value of inventory be reported on the balance sheet under IFRS and U.S. GAAP?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determines that fells balance is uncollectible

The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.

  Find accounts receivable turnover

Find the financial statements for 2 related/similar companies (Nike and reebok) and calculate the following ratios for each (note whether a particular ratio is not applicable):

  Requisitioned by the production supervisor for production

Direct materials of $10,000 are requisitioned by the production supervisor for the production area. Job order costing is used. The journal entry to record this transaction is:

  Authoritative bodies responsible-financial reporting

Identify the authoritative bodies responsible for setting financial reporting standards for State, local governments, the federal government and for not-for-profit organizations.

  Balance sheet or an income statement

Balance sheet or an income statement and show for each of the following items whether it would appear on a balance sheet

  Determine the estimated depletion cost per barrel of oil

Exon Oil acquired the rights to various oil reserves at $ 20,000,000 in March 1, 2007. The estimated barrels of oil are 5,000,000 barrels. Determine the estimated depletion cost per barrel of oil. If 800,000 barrels are extracted the first year, what..

  Illustrate what would burger queen net income be

Burger Queen Restaurant had the following information available related to its operations from last year : Sales (150,000 units) $500,000 Variable costs 200,000 Contribution margin $300,000 Fixed costs $150,000 If sales increased by 30% illustrat..

  The temporary book–tax difference for the depreciable asset

Ayres Services acquired an asset for $80 million in 2013. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS.

  Why are companies required to prepare a statement of cash

Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?

  Questionabsorption and variable costing with high-low cost

questionabsorption and variable costing with high-low cost estimation and cvp analysis including taxespresented are the

  Estimate the amount of inventory destroyed by the fire

Use the gross profit method to estimate the amount of inventory destroyed by the fire, and thus, the amount to be claimed from the insurance company.

  Consequences of the veil of incorporation

Write a brief explanation about why the directors' duty to prevent insolvent trading exists and the circumstances and consequences of the ‘veil of incorporation' being lifted for insolvent trading.

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