A company has a discount on a forward contract for an asset. How is the discount recognized over the life of the contract?

Question

asked Jan 1, 2021 82.4k views

1 Answer

Vamsikrishnamannem · Answer 1 · 2021-01-07T07:23:17+0000

Answer: It is charged to accumulated other comprehensive income.

Step-by-step explanation:

The discount is recognized over the life of the contract when it is charged to accumulate other comprehensive income.