500 words. Foreign Currency Transactions and Financial Instruments Answer the following the questions covering the main objectives of this module: Define      and differentiate the differences between

500 words. Foreign Currency Transactions and Financial Instruments

Answer the following the questions covering the main objectives of this module:

1. Define      and differentiate the differences between a cash flow hedge and a fair      value hedge, including when (in or under which particular or specific      circumstances) a U.S.-based firm would consider using one hedge versus the      other hedge.
2. Summarize      the differences that exist between the US GAAP and IFRS on the accounting      for derivatives designated as hedges at the current date you are answering      this question.
3. Prepare      an example of a U.S.-based firm managing an exposed foreign currency net      liability position, including the journal entries required from the date      the U.S. firm purchases goods on account from a foreign-based supplier      until the date the purchase is settled, including all journal entries      required over a 3-month period.