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What does Helen Kane think?

Helen Kane is the founder and president of Hedge Trackers, a Silicon Valley-based ASC 815 (FAS 133) consulting, outsourcing and software firm providing corporations with globally compliant accounting, reporting and analytics services for the effective hedging of foreign currency, interest rate ... See full profile

Fixed assets are recorded in functional currency at the rate when received. However, in your case you prepaid some or all of the equipment therefore...
Your example is difficult to follow but the basic concept is 1) if the receivable is denominated in a currency that is NOT the functional currency...
ASC 830 clearly requires you to use the April average rate (NOT the YTD average rate) for April P&L activity. This should be added to the March...
Yes, the changes in value of the foreign functional subsidiary related to FX and identified in the consolidation process (all assets and liabilities...
At each period end an entity is required to identify monetary assets in a non-functional currency and adjust that balance to its period end value....
The foreign subsidiary continues to be consolidated following ASC830 rule set so the gain/loss continues to be recorded in CTA for the period the...
This is an interesting issue. I believe it would be most appropriate to take the changes that occur prior to recording the liability above the line...
The answer is the P&L in most cases. The accounting guidance found in ASC 830 requires you to record a transaction at a current rate. It then...
Intercompany loans are not generally settled, so if you are remeasuring the loan under ASC830 and it impacts the P&L it would be a non-cash item...
My understanding of your question is 1) you have USD books where all peso transactions are revalued at period end and 2) you need MXN statutory books...
This is a very large question. If you have not taken any action to designate a special hedge accounting relationship, you fair value the instrument...
It is critical to know how the hedges impact your financial statements to understand how to incorporate them in the forecast process. If you are...
ASC 830-230-55 provides specific translation instructions based on your functional currency as well as a proof of that amount. You are correct in...
Following is a US company, US GAAP related response: If you are just starting to add foreign entities that require consolidation it is critical that...
As the loan was treated as "quasi-equity" its release to income will follow the CTA on equity rules. When the loan is converted to rubles, the CTA...
For Buma Aga: The appropriate hedge would depend on your intention. If you want to eliminate gains and losses on a consolidated basis you would need...
I thought I would take a stab at addressing what appears to be a series of questions. : 1st: when a subsidiary records interco activity at...
In the U.S. current best practice is to use a regression test to prove prospectively and retrospectively that the derivative will be highly effective...
Brian is correct. Corporate hedging programs should be focused on preserving margin, not making money. The corporation will not be immune to...
Software exists where exposures can be recorded (centrally or remotely), consolidated, and traded. The software then provides trade management and...
The election of functional currency is pivotal to responding to this question. If you are local currency functional, your margin hedging must be...
In almost every case a money-losing hedge is “successful”. Hedge programs are not designed to “make money” for a company. They should be perceived...
You didn’t indicate if you were long or short these currencies but given that you are concerned about expense I will assume you are selling these...
In general there are two sources of ineffectiveness in the hedge relationship: 1) the derivative does not mature on the same date that the hedged...
I am unclear if you are asking about the collection of actual currency flows for the settling of hedge contracts or if you are asking about the...