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Investment in FC 40,200
FC Receivable from XD 40,200
Hedging Instrument
FC Receivable Balance Transaction gain (loss)
12/1/20x4 ₱40,150
12/31/20x4 40,400 ₱250
3/1/20x5 40,200 (200)
Total Gain (Loss) ₱50
Without Hedging With Hedging
Proceeds from sales ₱60,000 ₱60,000
A. NOT A HEDGE ACCOUNTING –
Proceeds from forward
IMPORTING TRANSACTION (EXPOSED LIABILITY)
contract . 50
Total Proceeds ₱60,000 ₱60,050
Investment in FC 40,200
FC Receivable from XD 40,200
Firm Commitment 50
Inventory 50