For your convenience, I have attached a formatted MS Word file containing the text below, as well as reference sources which may serve to increase your understanding of the subject matter.
For the past few years, corporate involvement in executory contracts has mushroomed, with the use of any number of derivative financial instruments. A financial instrument is defined as "cash, equity shares, or a contract that provides a right to receive cash with a converse obligation to the other party to pay cash" (Brownlee, 2001).
In turn, a derivative is defined as a financial instrument whose value is determined (derived) from something else. The umbrella term "derivatives" includes futures contracts and interest swaps. Derivatives are usually used as "a hedge against some future eventuality, but it is also true that a derivative can be used as a pure (albeit speculative) investment vehicle" (Brownlee, 2001).
In terms of forward contracts and options; the SEC has been reluctant to issue rules ...
Subjects in foreign currencies, derivatives, forward contracts, and options.
Foreign Currency Transactions
Can you assist me with explaining:
The effect of derivatives and hedging activities on other comprehensive income. The effect of foreign currency translation on other comprehensive income.View Full Posting Details