Forward rate: is it expense or revenue? Discount or premium
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A US exporter has a Thai baht account receivable resulting from an export sale on April 1 to a customer in Thailand. The exporter signed a forward contract on April 1 to sell Thai baht and designated it as a cash flow hedge of a recognized Thai baht receivable. The spot rate was $0.022 on that date, and the forward rate was $0.023. Which of the following did the US exporter report in net income?
a) discount expense
b) discount revenue
c) premium expense
d) premium revenue
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Forward rate
A US exporter has a Thai baht account receivable resulting from an export sale on April 1 to a customer in Thailand. The exporter ...
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