An Example of an Operating Hedging Strategy Is

question 41

Multiple Choice

An example of an operating hedging strategy is

• A) a forward option.
• B) a put option.
• C) building a plant in foreign market
• D) a swap.

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Definitions:

Parent Entity

A company that has control over one or more subsidiaries, owing enough of their stock to influence their operations.

AASB 10

An Australian Accounting Standards Board standard that sets out the principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company and its subsidiaries into one document.

Non-controlling Interest

A minority ownership in a subsidiary that is not large enough to exert control over the company, reflected within the equity section of the consolidated financial statements.