Answer:
A. True
Explanation:
Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.
A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.
Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.
Based on this explanation, the correct option is <u>A. True</u>. That is, hedging transactions in an active future market have zero.
Answer:
Yes they offer no fee but then they want payed for a small fee....... Aaaa business this days
Answer: The price that Liliana will pay for shipping the furniture may be higher than the amount she saved.
Explanation:
Liliana wants a new furniture for her apartment which she found on the website of the manufacturer. From the information given in the question, we were informed that she will save $500 when she buys from the manufacturer directly.
From the information provided, the deal is good since she'll save $500 but the only thing that might stop her from making the purchase is when the shipping fee is more than the $500 she'll save. In that case, buying the furniture isn't really worth it as other options may be considered.
Answer:
Under IFRS, the building should be recorded at its historical cost minus its accumulated depreciation which is $450,000.
Explanation:
Under IFRS, IAS 16 Property, Plant and Equipment states that asset should be subsequently recorded following one the the following two models:
+ Cost model: The asset is carried at cost less accumulated depreciation and impairment;
+ Revaluation model: The asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation and impairment, provided that fair value can be measured reliably.
With information given in the question, there is lack of information about fair value of the building; that is whether the appraisal is done by the professional, independent appraiser or whether the price offer by potential buyer is the fair price in the market.
So, with given information, Cost model should be applied and the building should be recorded at its historical cost minus its accumulated depreciation which is $450,000.