Derivatives: Derivative is a product whose value is derived from underlying assets called base. Basically it is a contract between the two or more parties based on assets.
Cash flow hedge: Cash flow hedge is the process of reducing or eliminating the risk of changes in cash flow of financial assets or a liability due to the changes in specific risk, which arises due to interest rate risk on a floating rate debt instrument.
Fair value: Fair value is a selling price which is agreed by the buyer and seller.
Other comprehensive income or losses: All the incomes, gains, losses or expenses which are excluded from net income on the income statement are recorded as other comprehensive income using both GAAP as well as IFRS accounting principles.
To determine the reporting of the gains or losses related to cash flow hedges involving the anticipated transaction.
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INTERMEDIATE ACCOUNTING 17E - UNC CHARL
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