U.S. GAAP provides guidance for hedges of all the following sources of foreign exchange risk except
A) Recognized foreign currency denominated assets and liabilities.
B) Unrecognized foreign currency firm commitments.
C) Forecasted foreign currency denominated transactions.
D) Net investment in foreign operations.
E) Deferred foreign currency gains and losses.

Question

Quizplus · Accepted Answer

U.S. GAAP does not provide specific guidance for hedges of deferred foreign currency gains and losses, as these are not considered a direct source of foreign exchange risk that can be hedged.

US GAAP Provides Guidance for Hedges of All the Following