ACCT 540 Week 5 Course Project
ACCT 540 Week 5 Course Project – FASB Codification
In the last part of this project, it has come up that the controller of the company, Thomas Foods, lacks individual experience in regards to hedging strategies and how it relates to the accounting aspect of hedging. Because of the Controller’s inexperience, I have been tasked with providing examples of strategies and explaining how these hedges are realized and accounted for on the books.
Two strategies the Controller of Thomas Foods needs to be able to understand are fair value hedges as well as cash flow hedges……………. What the fair value hedge tries to do is that if there are any gains or losses on the hedging activity, that these would offset each other each period resulting in no gains or losses…………..
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