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ILLUSTRATION ON FV HEDGE-MURPHY INC..5 MILLION BOND ISSUE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › ILLUSTRATION ON FV HEDGE-MURPHY INC..5 MILLION BOND ISSUE

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 27, 2020 at 2:22 am #569314
    misbahkiran
    Participant
    • Topics: 109
    • Replies: 193
    • ☆☆☆

    Hi Sir

    This illustration is explained in lecture

    my question

    is this is over hedged?

    as gain on hedged item in 0.1 million and loss on instrument is 0.12 $..

    second question

    if it’s over hedged shouldn’t we need to take 0.1 in OCI rather profit and loss?

    April 27, 2020 at 4:30 pm #569367
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3442
    • ☆☆☆☆☆

    “over-hedging’ only applies to cash flow hedges.

    April 30, 2020 at 2:19 am #569577
    misbahkiran
    Participant
    • Topics: 109
    • Replies: 193
    • ☆☆☆

    thanks alot for correcting my concept…silly me..

    April 30, 2020 at 6:57 am #569581
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3442
    • ☆☆☆☆☆

    Not silly at all. Have a great day.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘ILLUSTRATION ON FV HEDGE-MURPHY INC..5 MILLION BOND ISSUE’ is closed to new replies.

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