弗洛伊德·A·比姆斯-高级会计学（第10版）Beams10e_Ch12.pptVIP

Beams, Advanced Accounting 10e, Ch. 12 ? Pearson Education, Inc. publishing as Prentice Hall Objectives (cont.) Understand the definition of a fair value hedge and the circumstances in which a derivative is accounted for as a fair value hedge. Account for a cash flow hedge situation from inception through settlement and for a fair value hedge situation from inception through settlement. Explain the difference between receivable or payable measurement and denomination. Understand key concepts related to foreign currency exchange rates, such as indirect and direct quotes; floating, fixed, and multiple exchange rates; and spot, current, and historical exchange rates. Objectives (cont.) Record foreign currency-denominated sales/receivables and purchases/payables at the initial transaction date, year-end, and the receivable or payable settlement date. Understand the special derivative accounting related to hedges of existing foreign currency denominated receivables and payables. Understand the International Accounting Standards Board accounting for derivatives. Comprehend the footnote disclosure requirements for derivatives. Derivatives (def.) Derivative is a name given to a broad range of financial securities. The derivative contracts value to the investor is Directly related to fluctuations in price, rate or some other variable That underlies it. Typical derivative instruments Option contracts Forward contracts Futures contracts Futures Contracts Futures contracts are specific type of forward contracts Characteristics are standardized Characteristics are set by futures exchanges Rather than by the contracting parties Exchange guarantees performance Settlement may also be made by entering another futures contract in the opposite direction Options With options, only one party is obligated to perform The other party has Ability, But not obligation to perform Hedge Accounting At inception, document the hedge Relationship between hedged item and derivative instrum