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executory contract and cash flow hedging

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › executory contract and cash flow hedging

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
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  • May 31, 2018 at 7:49 am #455033
    emma1031
    Member
    • Topics: 17
    • Replies: 6
    • ☆

    executory contract and cash flow hedging

    may i know what is the different?

    June 2, 2018 at 9:13 am #455437
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7222
    • ☆☆☆☆☆

    Hi,

    Executory contract – a contract between two parties where the obligations due under the contract are delivered at some point in the future. An example would be a lease.

    Cash flow hedge – where a derivative is used to protect the value of a future probable transaction.

    Thanks

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