Answer the following questions:
1. What is hedge accounting and, under US GAAP, what conditions must be met before it can be used?
2. Define “cash flow hedge,”“fair value hedge,” and state their differences.
3. State the difference between “accounting exposure” and “transaction exposure.”
4. What are the differences and similarities in treating translation of foreign currency financial statement between US GAAP and IFRS?
5.What are acceptable methods of translation of foreign currency financial statements under US GAAP and IFRS?
6.State the treatment of translation adjustment in consolidation of financial statements when Temporal Method is employed?
7.State how, under US GAAP, receivables and payables from international trade that are denominated in foreign currencies are recorded. 8.Enumerate the exchange rates that must be used for translating foreign currency financial statements under US GAAP and IFRS using Current Rate Method and Temporal Method. 9.How is “functional currency” defined under US GAAP and IFRS?
10.What are the journal entries for recognition of realized and unrealized foreign currency exchange gain or loss under US GAAP and IFRS?
International Accounting, Timothy Doupnik, Mark Finn, Giorgio Gotti, and Hector Perera, Fifth Edition, McGraw-Hill Irwin, 2020, New York, N.Y. ISBN for the loose-leaf edition is 978-1-260-46653-9 and for the bound edition is 978-1-259-74798.