After studying this chapter, you should be able to: |
LO1 | Understand concepts related to foreign currency, exchange rates, and foreign exchange risk. |
LO2 | Account for foreign currency transactions using the two-transaction perspective, accrual approach. |
LO3 | Understand how foreign currency forward contracts and foreign currency options can be used to hedge foreign exchange risk. |
LO4 | Account for forward contracts and options used as hedges of foreign currency denominated assets and liabilities. |
LO5 | Account for forward contracts and options used as hedges of foreign currency firm commitments. |
LO6 | Account for forward contracts and options used as hedges of forecasted foreign currency transactions. |
LO7 | Prepare journal entries to account for foreign currency borrowings. |