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?

User Account

All Pages