Under U.S. GAAP, what method of amortizing discounts or premiums on forward contracts must be used?
A. effective interest rate method
B. straight line method
C. Companies may choose effective interest rate method or straight line method.
D. Some other method must be used.
Answer:C
Under U.S. GAAP, what method of amortizing discounts or premiums on forward contracts must be used?
A. effective interest rate method B. straight line method C. Companies may choose effective interest rate method or straight line method. D. Some other method must be used.