Beruflich Dokumente
Kultur Dokumente
1-Oct Purchases
Accounts payable
31-Dec Forex loss
Accounts payable
1-Mar Accounts payable
Forex loss
Cash
820,000.00
820,000.00
80,000.00
80,000.00
900,000.00
20,000.00
920,000.00
HEDGE ITEM
1-Oct No entry
31-Dec No entry
31-Mar Purchases
Cash
Forex gain-OCI
Purchases
Forex loss-OCI
920,000.00
920,000.00
100,000.00
60,000.00
40,000.00
CASE 3
HEDGE ITEM
1-Oct
40,000.00
Forex gain
31-Mar Forex loss
Purchase commitment
Purchases
Cash
Purchase commitment
Purchases
40,000.00
100,000.00
100,000.00
920,000.00
920,000.00
60,000.00
60,000.00
CASE 4
hedge item
hedging instrument
Case 1 entries
no entries
820,000.00
80,000.00
820,000.00
80,000.00
Exposed liability
31-Dec
31-Mar
HEDGING INSTRUMENT
Forward contract receivable
Forward contract payable
Forex loss
Forward contract receivable
860,000.00
860,000.00
40000
40000
100,000.00
860,000.00
100,000.00
860,000.00
Foreign currency
Forward contract receivable
920000
Cash
Foreign currency
920000
ging instrument
e 1 entries
920000
920000
HEDGE INTRUMENT
Gross
VARIABLE
FIXED
860,000.00
Forex loss
Forward receivable contract
Forward contract receivable
Forex Gain
100,000.00
860,000.00
920,000.00
1-Oct Derivative
31-Dec
31-Mar
40,000.00
60,000.00
40,000.00
100,000.00
860,000.00
920,000.00
Cash
Foreign currency
40,000.00
860,000.00
40,000.00
100,000.00
860,000.00
920,000.00
920000
920,000.00
Net (difference)
860,000.00
40,000.00
No entry
Forex loss
Forward receivable contract
40,000.00
40,000.00
100,000.00
100,000.00
920000
60,000.00
860,000.00
820,000.00
Accounts payable
31-Dec-15 Forex loss
820,000.00
80,000.00
Forex loss
Forward receivable contract
80,000.00
Accounts payable
31-Mar-16 Accounts payable
900,000.00
20,000.00
Forex loss
Cash
31-Dec-15
INSTRUMENT
NO ENTRY
NO ENTRY
31-Mar-16 Purchases
920,000.00
Cash
Forex gain-OCI
Purchases
Forex loss-OCI
100,000.00
60,000.00
40,000.00
ITEM
1-Oct-15
INSTRUMENT
Forward contract receivable
Forward contract payable
NO ENTRY
40,000.00
Forex loss
40,000.00 Forward contract receivable
100,000.00
Forex gain
31-Mar-16 Forex loss
Purchase commitment
Purchases
Cash
Purchase commitment
Purchases
920,000.00
920,000.00
60,000.00
Foreign currency
60,000.00 Forward contract receivable
Cash
Foreign currency
Case 4 Speculation (Not a Hedge Accounting)
ITEM
1-Oct-15
31-Dec-15
31-Mar-16
INSTRUMENT
NO ENTRY
NO ENTRY
Forex loss
Forward receivable contract
NO ENTRY
ITEM
1-Oct-15 Accounts Receivable
INSTRUMENT
820,000.00
Sales
31-Dec-15 Accounts Receivable
80,000.00
Forex gain
31-Mar-16 Cash
920000
Accounts Receivable
Forex gain
900,000.00
20,000.00
Forex loss
Forward contract payable
Cash
Forward contract receivable
Forward contract payable
Foreign currency
ITEM
1-Oct-15
31-Dec-15
31-Mar-16 Cash
INSTRUMENT
No entry
No entry
Sales
Forex gain-OCI
Sales
Forex loss-OCI
920,000.00
40,000.00
60,000.00
Forex loss-OCI
Forward contract payable
Cash
Forward contract receivable
100,000.00
ITEM
1-Oct-15
INSTRUMENT
Forward contract receivable
Forward contract payable
No entry
40,000.00
Firm commitment
40,000.00
100,000.00
Forex Gain
Cash
Sales
100,000.00
Forex loss-OCI
Forward contract payable
920,000.00
Cash
Forward contract receivable
920,000.00
Sales
Firm Commitment
60,000.00
60,000.00
ITEM
1-Oct-15
31-Dec-15
31-Mar-16
No entry
INSTRUMENT
Forward contract receivable
Forward contract payable
No entry
No entry
Forex loss-OCI
Forward contract payable
Cash
Forward contract receivable
Forward contract payable
Foreign currency
RUMENT
860,000.00
659,000.00
40,000.00
40,000.00
700.00
400.00
700.00
100,000.00
100,000.00
400.00
860,000.00
860,000.00
920,000.00
920,000.00 Case 2 Forecasted Transaction (Cash Flow Hedge)
ITEM
RUMENT
1-Oct-15
860,000.00
860,000.00
40,000.00
40,000.00
100,000.00
100,000.00
NO ENTRY
31-Dec-15
860,000.00
860,000.00
920,000.00
920,000.00
920,000.00
NO ENTRY
31-Mar-16 Purchases
Cash
Forex gain-OCI
Purchases
Forex loss-OCI
659,300.00
659,300.00
700.00
300.00
400.00
RUMENT
860,000.00
700.00
400.00
700.00
860,000.00
40,000.00
400.00
40,000.00
Purchases
Cash
100,000.00
659,300.00
659,300.00
100,000.00
Firm Commitment
Purchases
860,000.00
860,000.00
920,000.00
920,000.00
300.00
300.00
920,000.00
920,000.00
RUMENT
ITEM
1-Oct-15
860,000.00
NO ENTRY
860,000.00
31-Dec-15
40,000.00
NO ENTRY
40,000.00
31-Mar-16
100,000.00
NO ENTRY
100,000.00
860,000.00
860,000.00
920,000.00
920,000.00
RUMENT
860,000.00
100.00
500.00
Cash
Accounts receivable
441,600.00
100.00
860,000.00
40,000.00
500.00
40,000.00
100,000.00
441,600.00
100,000.00
860,000.00
920,000.00
31-Dec-15
NO ENTRY
RUMENT
860,000.00
860,000.00
40,000.00
40,000.00
100,000.00
100,000.00
860,000.00
860,000.00
31-Mar-16 Cash
Sales
Forex gain-OCI
Gain on put option
441,600.00
441,600.00
400.00
400.00
920,000.00
920,000.00
860,000.00
860,000.00
40,000.00
40,000.00
100,000.00
100,000.00
100
500
860,000.00
Cash
Sales
920,000.00
Sales commitment
Gain on put option
860,000.00
920,000.00
860,000.00
860,000.00
40,000.00
31-Mar-16
100,000.00
100,000.00
860,000.00
860,000.00
920,000.00
920,000.00
500
441600
441600
400
400
40,000.00
100
No entry
No entry
Call option
Cash
INSTRUMENT
1,000.00
1,000.00
Call option
Forex gain
2,700.00
Forex loss
Call option
3,400.00
Foreign currency
Call option
Cash
Call option
Cash
2,700.00
3,400.00
659,300.00
300.00
659,000.00
INSTRUMENT
1,000.00
1,000.00
Call option
Forex gain-OCI
Forex gain-P/L
2,700.00
Forex loss-OCI
Forex loss-P/L
Call option
400.00
3,000.00
Foreign currency
Call option
Cash
Call option
Cash
700.00
2,000.00
3,400.00
659,300.00
300.00
659,000.00
INSTRUMENT
1,000.00
1,000.00
Call option
Forex gain
2,700.00
Forex loss
Call option
3,400.00
Foreign currency
Call option
Cash
2,700.00
3,400.00
659300
300
659000
Call option
Cash
INSTRUMENT
1,000.00
1,000.00
Call option
Forex gain
2,700.00
Forex loss
Call option
3,400.00
Foreign currency
Call option
Cash
2,700.00
3,400.00
659,300.00
300.00
659,000.00
Put option
Cash
INSTRUMENT
2,000.00
2,000.00
Forex loss
Put option
500.00
Forex loss
Put option
1,100.00
Cash
Put option
Foreign currency
Put option
Cash
Forex loss-P/L
Put option
Forex loss-P/L
Forex gain-OCI
Put option
Cash
Put option
Foreign currency
500.00
1,100.00
442,000.00
400.00
441,600.00
INSTRUMENT
2,000.00
2,000.00
500.00
500.00
1,500.00
400.00
1,100.00
442,000.00
400.00
441,600.00
Put option
Cash
INSTRUMENT
2,000.00
2,000.00
Forex loss
Put option
500.00
Forex loss
Put option
1,100.00
Cash
Put option
Foreign currency
INSTRUMENT
Put option
Cash
500.00
1,100.00
442,000.00
400.00
441,600.00
2,000.00
2,000.00
Forex loss
Put option
500.00
Forex loss
Put option
1,100.00
Cash
Put option
Foreign currency
500.00
1,100.00
442,000.00
400.00
441,600.00
If the forward contract is not designated as a hedge = the rate to be used is the forward rate at the da
If the firm purchase commintment is designated as a hedge = the rate to be used is the forward rate a
Forward currency unit payable should be recorded at forward rate on the date of hedging
Seller
Buyer
Forward rat>
Spot rate Premium Premium
Revenue Expense
Purchase commitmentrate decreases
loss
export
Sales commitment
gain
import
rate decreases
spot rate