hedge accounting

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April 1, 2018 at 11:36 pm #444416
reality002
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I have a doubt relating to hedge accounting lecture video… In the illustration given in that video what if the additional note is “shortly after the reporting date the oranges are brought for $.15m ” how we account for that… currently, we have .05 gain in OCI…
April 8, 2018 at 8:43 am #445590
P2-D2
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Hi,

When you close out the contract there would be a loss on the contract, which would be $0.05 million, and the net cost would still be $0.2 million for the oranges.

Thanks
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