Net investment in a foreign entity

Reference no: EM13148233

The gain or loss on the effective portion of a U.S. parent company's hedge of a net investment in a foreign entity should be treated as:

A. an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.

B. other comprehensive income.

C. a translation gain or loss in the computation of net income for the reporting period.

D. an adjustment to a valuation account in the asset section of its balance sheet.

Reference no: EM13148233

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