For a cash flow hedge, gain or loss on the foreign currency hedging derivative instrument is recognized in Blank______. Multiple choice question. income statement balance sheet cash flow statement other comprehensive income
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A cash flow hedge is used to hedge the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a forecasted transaction. Show more…
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An entity recognizes deferred taxes on the gain or loss on derivatives designated as cash flow hedges due to the different accounting treatments of these derivatives under IFRS and for the purpose of the tax calculation. During the current accounting period, a loss on derivatives designated as cash flow hedges which amounted to (3,700) was recognized. The entity has chosen to present two statements: a separate statement of profit or loss and a statement of comprehensive income. Where should the entity recognize tax consequences of this loss during the current accounting period? in the statement of profit or loss In the statement of comprehensive income Either in the statement of comprehensive income or in the statement of changes in equity Either in the statement of profit or loss or in the statement of comprehensive income
James K.
Yujie W.
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