Complete Solution Manuals for Intermediate Accounting, 11th Edition 11e by David Spiceland, Mark Nelson, Wayne Thomas and Jennifer Winchel. ISBN-13: 4526
Full Chapter Solutions are included - End of chapters exercises and problems solutions.
Section 1: The Role of Accounting as an Information...
Solutions Manual, Appendix A A–1 . Question A–1 These instruments “derive” their values or contractually required cash flows from some other security or index. Question A–2 The FASB has taken the position that the income effects of the hedge instrument and the income effects of the item being hedged should be recognized at the same time. Question A–3 If interest rates change, the change in the debt’s fair value will be less than the change in the swap’s fair value. The gain or loss on the $500,000 notional difference will not be offset by a corresponding loss or gain on debt. Any increase or decrease in income resulting from a hedging arrangement designated as a fair value hedge would be a result of differences such as this. As long as the derivative instrument is considered “highly effective” in offsetting the changes in fair value of the debt, then hedge accounting may be used. Question A–4 A futures contract is an agreement between a seller and a buyer that calls for the seller to deliver a certain commodity (such as wheat, silver, or Treasury bond) at a specific future date, at a predetermined price. Such contracts are actively traded on regulated futures exchanges. When the contract involves a financial instrument, such as a Treasury bill, commercial paper, or a CD, the contract is called a financial futures agreement. Question A–5 An interest rate swap exchanges fixed interest payments for floating rate payments, or vice versa, without exchanging the underlying notional amount. The interest expense then reflects the rate(s) to which the interest has been swapped. If the interest rate swap is designated as a fair value hedge, the interest expense also reflects offsetting gains and losses on the fair value of the swap and the fair value of the hedged asset or liability. Appendix A Derivatives����������������������������������Powered by TCPDF (www.tcpdf.org)
1 / 1
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable.
Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StepsSol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $39.99. You're not tied to anything after your purchase.
