White Perfect Berhad, a Malaysian listed company, has regular acquisitions of silver froma Japanese supplier. Therefore, White Perfect Berhad designates a future purchase of silveras a hedged item in a cash flow hedge.On 1 January 2017, White Perfect Berhad purchased the silver. On the same date, acumulative gain on the hedging instrument of RM6 million had been credited to othercomprehensive income.At the year end of 31 December 2017, the carrying amount of the silver was RM16 millionand its net realizable value was RM12 million. The silver was finally sold on 31 March2018 for RM12.4 million.Required:Show how White Perfect Berhad should recognize and measure the cash flow hedge forthe year 2017. and 2018.

Hedge-In accounting, hedge accounting is a special election that gives favorable treatment to…

Answered: Required: Show how White Perfect Berhad…

Business

Accounting

Required: Show how White Perfect Berhad should recognize and measure the cash flow hedge for the year 2017 and 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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