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Question Your Company June 1999

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Question Your Company June 1999

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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    Posts
  • May 11, 2015 at 7:52 pm #245321
    at800
    Member
    • Topics: 29
    • Replies: 32
    • ☆☆

    Hi John,

    The answer states that there is no need to use dim sum bond market, unless the entity has direct investment in China or may rereceive a better interest thereby.

    My question is what about using of China currency for hedging purposes without direct investment in China (I.e. loan in non-related currency which is naturally a hidden hedge and which is reported like embeded derivative per IFRS, if I’m not mistaken).
    Would it worth a mark?

    Thank you in advance.

    May 12, 2015 at 6:45 am #245383
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    I think we must have different versions of the question.

    I have the original exam question and it is about preparing a revised guidance manual. There is no mention of investing in China (or in any foreign country 🙂 )

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