IMPORT:BUYER’S POINT: CONCEPT OF A.

PAYABLE
MEASUREMENT DATES DIRECT; MULTIPLY
SPOT RATE LIAB/PAYABLE
2019 DATE OF TRNX PHP 12.3263 DIRHAMS 120,000.00
2019 B/S DATE PHP 12.33 DIRHAMS 120,000.00
2020 DATE OF SETTLEMENT PHP 12.3416 DIRHAMS 120,000.00

ANALYZE UNDER PURCHASE TNX: IMPORT

EQUIPTMENT IS TEMPORAL ACCOUNT CONSTANT: CARRIED AT HISTORICAL VALUE @DOT P1,479,600
AP IS MONETARY LIAB: DOT 1,479,156.00
BASED ON SPOT RATE BSD 1,479,600.00
DOS 1,480,992.00
ADJUST FIRST BEFORE MAG SETTLE: LOVE LOVE

EXPORT:SELLER’S POINT: CONCEPT OF A.RECEIVEABLE

MEASUREMENT DATES DIRECT; MULTIPLY
SPOT RATE ASSET/RECEIVABLE
12/10/2019 DATE OF TRNX PHP 8.3098 DAN K 95,000.00
12/31/2019 B/S DATE PHP 8.3365 DAN K 95,000.00
2/28/2020 DATE OF SETTLEMENT PHP 8.2615 DAN K 95,000.00

ANALYZE UNDER PURCHASE TNX: EXPORT

SALES ACCOUNT TEMPORAL, DOEST'N CHANGE UNTIL BSD
AR IS MONETARY ASSET: DOT 789,431.00
BASED ON SPOT RATE BSD 791,967.50
DOS 784,842.50
ADJUST FIRST BEFORE MAG SETTLE: LOVE LOVE

NON-DERIVA
GROSS M.
FPRWARD EX-C OPTION CON SIMILARITIES
sure tuloy may not both have 'underlyer'
i.e exchange rate
both settled in FUTURE DATES
DIFFERENCE

NEEDED BIG INV.

kasi naka gross

DOLLAR WILL WEAKEN SITUATATION: MEANS PESO WILL STRENGTEN, LOSS: SALE/UNDER AR CONC
HEDGE ITEM
EXPORT:SALES TNX SPOT RATE ASSET/RECEIVABLE
10/1/2018 DATE OF TRNX PHP 46.35 USD 80,000.00
 12/31/2019 B/S DATE PHP 46
3/31/2019 DATE OF SETTLEMENT PHP 45.6
SAME SALE SHORT CUT LOSS 4T
TNX
HEDGE INSTRUMENT
HEDGE SALE FOREX 6 MOS. FORWARC : SALE OF $80,000
ON CURRENCY RISK IN USD FORWARD LIAB/AP TO BANK
10/1/2018 180-DAY rem.days PHP 46.3 USD 80,000.00
12/31/2019 90 -DAY rem days PHP 45.8 "CONTRACT PAYABLE"
3/31/2019 spot rate na PHP 45.6 USD 80,000

Qs; HOW MUCH IS THE G/L IN EXCHANGE CONTRACT IN 2019? ANS. P40,000 forex gain
HOW MUCH IS THE G/L IN EXCHANGE CONTRACT I(no date)? ANS. Total P56,000 forex gain
HOW MUCH IS THE G/L IN EXCHANGE CONTRACT IN 2020? ANS. P16,000 forex gain

HEDGE EXCHANGE CONTRACT POSSIBLE QUESTIONS:

how much is the CONTRACT RECEIVABLE (PESO) DOT?? Ans: 3,704,000
how much is the CONTRACT RECEIVABLE BSD?? Ans: 3,704,000 PARIN
how much is the CONTRACT RECEIVABLE (PESO) DOS?? Ans: 3,704,000 PARIN
HOW MUCH IS THE G/L ON HEDGING RELATIONSHIP ( HEDGE INSTRUMENT VS HEDGE ITEM)??
IF NO DATE: SHORTCUT
DOT SPOT RATE- DOT 180DAY *80,000 USD 4T LOSS

AYAW MO NGA MALUGI, SO NAGHEHEDGE KA----

HEDGE means enter a contract with FINANCIAL INSTITUTION
KINOKONTRATA MO NA YUNG MAKOKOLEKTA MO NA $80,000 IN THE FUTIRE KAY BANK
HINDI MO PA HAWAK, KASI TAKOT KA MALUGI

HEDGE ITEM PAYABLE CONCEPT (DIRECTLY QOUTED)

IMPORT:PURCH TNX SPOT RATE LIAB/PAYABLE
11/1/2018 DATE OF TRNX PHP 0.55 FC 100,000.00
12/31/2018 B/S DATE PHP 0.56
1/31/2019 DATE OF SETTLEMENT PHP 0.55
SAME SALE
TNX
HEDGE INSTRUMENT-
DERIVATRIVE
HEDGE PURCH FOREX 6 MOS. FORWARC : SALE OF $80,000
ON DEIVATIVE FORWARD LIAB/AP TO BANK
11/1/2018 90-DAY rem.days PHP 0.57 USD 100,000.00
12/31/2018 30-DAY rem days PHP 0.58 "CONTRACT RECEIVABLE"
1/31/2019 spot rate na PHP 0.55 USD PABAGO-BAG

Qs; HM CASH WHLOUD BE THE CASH SETTLEMENT ? IF POSITIVE: RECEIVABLE FR BAN

 IN TERMS OF FORWARD CONTRACT??? ANS. P2T
SHORTCUT: FORWARD 90 DAYS DOT .57 - SPOT RTAE DOS .55*100,000 FC

HEDGE INSTRUMENT-
HEDGE PURCH FOREX 6 MOS. FORWARC : SALE OF $80,000
ON DEIVATIVE FORWARD LIAB/AP TO BANK
12/1/2018 90-DAY rem.days PHP 54 USD 20,000.00
12/31/2018 60-DAY rem days PHP 53.8 "CONTRACT PAYABLE"
3/1/2019 spot rate na PHP 53.7 USD PABAGO-BAG

Qs; HM CASH WHLOUD BE THE CASH SETTLEMENT ? IF POSITIVE: RECEIVABLE FR BAN

IN TERMS OF FORWARD CONTRACT??? ANS. RECEIVE 6T (positive0

HEDGE ITEM CALL OPTION

SPOT RATE EXERCISE RATE
MARKET RATE STRIKE PRICE
AT EQUAL
IN THE MONEY GAIN
OUT THE MONEY LOSS

FC SALES TNX:EXPORT:AR CONCEPT

DOT
12/1/2018
AR FR PESO 1.305
FC 1000000

FOREX GAIN
PV 1% 2 mos

EXPORT;sales HEDGE INSTRUMENT: FIRM COMMITMENT

DOT
12/1/2018
Frwd SALES Cntct FR PESO 1.305
AP (OPPOSITE) 1000000
LIAB NA
FOREX LOSS INC AP
PV 1% 2 mos
 AP
PAYLE IN OES DIFFERENCE
###
### 444.00 2019 Forex loss (inc in liab
### 1,392.00 2020 Forex loss (inc in liab
1,836.00 TL LOSS (ANS.IF NO
SPC DATE ASKED
L VALUE @DOT P1,479,600. FOR FXLOSS
SHORTCUT IF NO DATE IN Qs
DOT SR-DOS SR * FOREX = TL G/L

AR
AR IN PESO DIFFERENCE
789,431.00
791,967.50 2,536.50 2019 Forex GAIN INC AR
784,842.50 (7,125.00) 2020 Forex loss dec in AR
(4,588.50) TL LOSS (ANS.IF NO
SPC DATE ASKED
FOR FX GAIN/LOSS
SHORTCUT SHORTCUT IF NO DATE IN Qs
DOT SR-DOS SR * FOREX = TL G/L

DERIVATIVE
NET.M
SIMILARITIES
have 'underlyer'

ettled in FUTURE DATES

DIFFERENCE
NEEDS MINIMAL
/NO INVESTMENT
"LAWAY"

SS: SALE/UNDER AR CONCEPT

AR
AR IN PESO G/L (DIFF) HEDGE ITEM
###
 ### (28,000.00) 2019 Forex LOSS DEC. AR
### (32,000.00) 2020 Forex LOSS DEC.AR
(60,000.00) TL FXLOSS
OPPOSITE

DAHIL PAS 1 REQ. FS IN PESO

AP IN PESO AMTHDGE EXCHANGE CONTRACT/ H
###
### (40,000.00) 2019 FOREX GAIN, AP DEC
### (16,000.00) 2020 FPREX GAIN AP DEC
(56,000.00) TL GAIN : DEC IN AP

56,000 forex gain "CONTRACT RECEIVABLE" DOC

PESO P3,704,000

how much is the CONTRACT PAYABLE (DOLLAR) DOT?? Ans: 3,704,000

how much is the CONTRACT PAYABLE (DOLLAR) DOT?? Ans: 3,664,000
how much is the CONTRACT PAYABLE (DOLLAR) DOT?? Ans: 3,648,000
T VS HEDGE ITEM)??
2019 LOSS OF 28,000 + GAIN OF 40,000 = NET G P12T
2020 LOSS OF 32,000+GAIN 16,000= NET L (16T)

TIRE KAY BANK

AR
AP IN PESO G/L (DIFF) HEDGE ITEM
55,000.00
56,000.00 (1,000.00) 2019 Forex LOSS INC AP
55,000.00 1,000.00 2020 Forex LOSS DEC.AP
OPPOSITE - TL FXLOSS

DAHIL PAS 1 REQ. FS IN PESO

AR IN PESO AMTHDGE EXCHANGE CONTRACT/ H
57,000.00
58,000.00 1,000.00 2019 FOREX GAIN, AR INC
55,000.00 (3,000.00) 2020 FPREX GAIN AP DEC
(2,000.00) TL LOSS : DEC IN AR
SITIVE: RECEIVABLE FR BANK/ IF NEGATIVE PAYABLE KAY BANK
 "CONTRACT PAYABLE" FIXED
PESO P57,000
OPPOSITE

DAHIL PAS 1 REQ. FS IN PESO

AR IN PESO AMTHDGE EXCHANGE CONTRACT/ H
###
### 4,000.00 2019 FOREX GAIN, LIAB DEC
### 2,000.00 2020 FPREX GAIN DEC AP
6,000.00 TL GAIN
SITIVE: RECEIVABLE FR BANK/ IF NEGATIVE PAYABLE KAY BANK
"CONTRACT RECEIVABLE" FIXED

PORT:AR CONCEPT
BSD DOS NET EFFECT
12/31/2018 3/1/2019
1.316 1.3

0.011 -0.016
11,000.00 FREX LOSS -16000 (5,000.00)
10,783.00 bal.fig -15,783 (5,000.00)

MENT: FIRM COMMITMENT

BSD DOS NET EFFECT
12/31/2018 3/1/2019
1.316 1.3

-0.011 0.016
(11,000.00) FREX LOSS 16000 5,000.00
(10,783.00) bal.fig -15,783 5,000.00