reading 26, page 349: q6 does the answer mean: for effective portion, it goes to b/s comprehensive income, then what for ineffective portion, will it goes to i/s? what does it mean “then is recognized as part of gain or loss when the forecasted transactions affect earnings”? thanks.
yes, ineffective part goes to I/S. The effective part goes to OCI as a “holding place” and then when the transaction actually happens, it hits earnings.
Does ineffective part refer to the portion before actual transaction happen? thanks. AndrewUNH Wrote: ------------------------------------------------------- > yes, ineffective part goes to I/S. The effective > part goes to OCI as a “holding place” and then > when the transaction actually happens, it hits > earnings.