Our company is going to enter into a 6 month fixed forward contract for a supplier based in Ireland. The amount of hedging is based on the forecast spend. The exchmage rate would be fixed, therefore the only variable element is the increase/decreas in the spend. What is the best accounting policy to use for this Cash Flow Hedging Accounting? Fair Value Hedge Accounting or Net Investment Hedge Accounting?
RH
21st Apr 2008
1
Forward Options and Accounting Policies
Forward Options and Accounting Policies