1 Item 43 Item 43 2 points Time Remaining 2 hours 10 minutes 38 seconds 02:10:38
ID: 2395570 • Letter: 1
Question
1
Item 43
Item 43 2 points
Time Remaining 2 hours 10 minutes 38 seconds
02:10:38
The gain or loss on the effective portion of a U.S. parent company's hedge of a net investment in a foreign entity should be treated as:
Multiple Choice
an adjustment to a valuation account in the asset section of its balance sheet.
other comprehensive income.
an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
a translation gain or loss in the computation of net income for the reporting period.
Explanation / Answer
The gain or loss on the effective portion of a U.S. parent company's hedge of a net investment in a foreign entity should be treated as other comprehensive income.
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