The Gain or Loss on the Effective Portion of a U.S.parent

question 45

Multiple Choice

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:

• A)an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
• B)other comprehensive income.
• C)a translation gain or loss in the computation of net income for the reporting period.
• D)an adjustment to a valuation account in the asset section of its balance sheet.

---

Definitions:

Vision

A forward-looking statement or concept that outlines what an organization or individual aspires to achieve in the future.

Roles and Responsibilities

delineate the specific duties, tasks, and expectations assigned to individuals or groups within an organization or team.

Discovery Process

The systematic process in legal contexts for the exchange of information between the parties involved in litigation, or the phase in research and development where foundational insights are uncovered.

Brand Assets

The unique elements and properties of a brand, such as logos, trademarks, and design, that differentiate it and create value for the business.