Questions from Advanced Accounting

Q: X Company recently acquired control over Y Company. On the date

X Company recently acquired control over Y Company. On the date of acquisition, the fair values of Y Company's assets exceeded their tax bases. How does this difference affect the consolidated balance...

Q: A parent company has recently acquired a subsidiary. On the date

A parent company has recently acquired a subsidiary. On the date of acquisition, both the parent and the subsidiary had unused income tax losses that were unrecognized in their financial statements. H...

Q: Briefly summarize the accounting issues arising from foreign-currency-denominated

Briefly summarize the accounting issues arising from foreign-currency-denominated transactions.

Q: What are some typical reasons for acquiring a forward exchange contract?

What are some typical reasons for acquiring a forward exchange contract?

Q: If a foreign-currency-denominated payable has been hedged,

If a foreign-currency-denominated payable has been hedged, why is it necessary to adjust the liability for balance sheet purposes?

Q: Explain the application of lower of cost and net realizable value to

Explain the application of lower of cost and net realizable value to inventory that was purchased from a foreign supplier.

Q: How does the accounting for a fair value hedge differ from the

How does the accounting for a fair value hedge differ from the accounting for a cash flow hedge of an unrecognized firm commitment?

Q: When long-term debt hedges a revenue stream, a portion

When long-term debt hedges a revenue stream, a portion of the long-term debt becomes exposed to the risk of changes in exchange rates. Why is this?

Q: What is the suggested financial statement presentation of hedge accounts recorded under

What is the suggested financial statement presentation of hedge accounts recorded under the gross method? Why?

Q: What is meant by hedge accounting?

What is meant by hedge accounting?