Under USGAAP,what Method of Amortizing Discounts or Premiums on Forward Contracts

question 38

Multiple Choice

Under U.S.GAAP,what method of amortizing discounts or premiums on forward contracts must be used?

• A)effective interest rate method
• B)straight line method
• C)Companies may choose effective interest rate method or straight line method.
• D)Some other method must be used.

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