Derivative Instruments and Hedging Activities Paper 5


If it is not practicable for an entity to estimate the fair value of a financial instrument, which of the following should be disclosed?
I. Information pertinent to estimating the fair value of the financial instrument.
II. The reasons it is not practicable to estimate fair value.


Disclosure requirements for financial instruments include


Disclosure of credit risk of financial instruments with offbalance- sheet risk does not have to include


Disclosure of information about significant concentrations of credit risk is required for


Kline Bank has large amounts of notes receivable from companies with high debt-to-equity ratios as a result of buyout transactions. Kline is contemplating the following disclosures for the notes receivable in its year-end financial statements:
I. Information about shared activity, region, or economic characteristic.
II. A brief description of collateral supporting these financial instruments.
Which of the above disclosures are required under GAAP?


Whether recognized or unrecognized in an entity’s financial statements, disclosure of the fair values of the entity’s financial instruments is required when


Under IFRS, a cash flow hedge and a hedge of a net investment are accounted for by


Strobel Company has a large amount of variable rate financing due in one year. Management is concerned about the possibility of increases in short-term rates. Which of the following would be an effective way of hedging this risk?


Which of the following techniques is used to value stock options?


In valuing interest rate swaps, the zero-coupon method uses all of the following variables except


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