Worked-example setupScope and assumptions
- All entities, transactions, values, rates, designations, and conclusions are fictional and supplied for instruction.
- The verifier recomputes bounded mechanics; it does not make scope, valuation, control, functional-currency, tag-selection, or release conclusions.
- Period
- Year ended December 31, Year 5
- Units
- US dollars, foreign-currency units, and XBRL contexts as labeled
- Rounding
- Retain full precision; display currency with commas and parentheses and ratios to two decimals
Relationship and recognition
The exercise stipulates that the copper forward is a qualifying cash-flow hedge of a probable forecast inventory purchase and supplies the derivative fair values. The $48,000 derivative gain enters current OCI. When $30,000 of the hedged purchase is recognized, that amount leaves AOCI as a basis adjustment; $18,000 remains in AOCI.
What the tie proves
The schedule proves the fair-value movement and AOCI rollforward under supplied facts. It does not value the forward, establish designation or effectiveness, prove forecast probability, or approve the inventory basis. The workpaper cross-references the purchase receipt, derivative statement, designation, and inventory lot so those conclusions can be reviewed separately.
Quantitative companions
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Verified calculation · professional extension analysis
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- acquisition basis asset adjustment
- 0
- cash consideration
- 0
- closing rate
- 0
- current earnings reclassification
- 0
- derivative ending fair value
- 48,000
- derivative opening fair value
- 0
- forecast purchase basis adjustment
- 30,000
- foreign currency units
- 0
- hedge type
- cash flow
- hedged item attributable change
- 0
- identifiable assets fair value
- 0
- intercompany payable elimination
- 0
- intercompany receivable elimination
- 0
- investment elimination
- 0
- liabilities assumed fair value
- 0
- monetary item kind
- none
- noncash consideration
- 0
- noncontrolling interest fair value
- 0
- opening aoci
- 0
- parent assets
- 0
- parent liabilities
- 0
- previously held interest fair value
- 0
- reported closing carrying amount
- 0
- reported complete xbrl facts
- 0
- reported consolidated assets
- 0
- reported consolidated liabilities
- 0
- reported current earnings effect
- 0
- reported current oci effect
- 48,000
- reported derivative change
- 48,000
- reported duplicate xbrl facts
- 0
- reported ending aoci
- 18,000
- reported goodwill
- 0
- reported initial functional amount
- 0
- reported remeasurement gain loss
- 0
- reported translated net income
- 0
- reported translation adjustment
- 0
- subsidiary assets
- 0
- subsidiary liabilities
- 0
- transaction rate
- 0
- translated assets
- 0
- translated beginning retained earnings
- 0
- translated common stock
- 0
- translated dividends
- 0
- translated expenses
- 0
- translated liabilities
- 0
- translated revenue
- 0
Recomputed result
| Measure | Value |
|---|---|
| current oci effect | 48,000 |
| derivative change | 48,000 |
| ending aoci | 18,000 |