Nama : Belthasar Trito Siahaan

NIM : 157017036
Tugas : Akuntansi Internasional

HEDGING AN IDENTIFIABLE COMMITMENT

US firm purchase a piece of equipment jan 19x4 from germany firm, and it cost DM
1.000.000. the payment due is jan 19x5.

Spot rate for DM 1 on jan 19x4 is $ 0,52
Forward rate for DM 1 for the contract is $ 0,54
Exchange rate for DM 1 on dec 31 19x4 is $ 0,53

Answer:

US firm account:

Transaction day
1 jan 19x4:
Payable $ 520.000
Equipment $ 520.000
(DM 1.000.000 X $ 0,52)

Report day
31 dec 19x4:
Payable $ 520.000
Loss $ 10.000
Equipment $ 530.000
(DM 1.000.000 X $ 0,53)

Settlement day
1 jan 19x5:
Payable $ 520.000
Loss $ 20.000
Cash $ 540.000
(DM 1.000.000 X $ 0,54)

000 Gain $ 10.000.000 X $ 0.000 Gain $ 20.000 (DM 1.000.000 (DM 1.000 Receivable $ 520.000 Sales $ 530.000 X $ 0.53) Settlement day 1 jan 19x5 Cash $ 540.000.000 (DM 1.000 X $ 0.54) .Germany firm account: Transaction day 1 jan 19x4 Receivable $ 520.52) Report day 31 dec 19x4 Receivable $ 520.000 Sales $ 520.