Q11-6 - balance sheet date should be at the local currency...

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Q11-6 Assets and liabilities denominated in a foreign currency are measured according to the requirements in FASB 52 for those arising from normal purchase and sale transactions, and by FASB 133 for forward exchange contracts and hedging activities. FASB 52 specifies that the valuation at the transaction date and each subsequent
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Unformatted text preview: balance sheet date should be at the local currency equivalent using the spot rate of exchange. Forward exchange contracts are valued at fair value, typically by using the forward rate for the remainder of the term of the forward contract....
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This note was uploaded on 10/22/2008 for the course ACC 440 taught by Professor Henderson during the Summer '08 term at University of Phoenix.

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