#1 Hedged item Hedging instrument

1-Dec-16 Purchases 2,600,000 FC receivable 2,620,000

AP 2,600,000 FC payable 2,620,000

31-Dec-16 Forex loss 25,000 Loss on FC 15000

AP 25,000 FC receivable 15000

1-Mar-17 AP 2,625,000 Cash (fc) 2,610,000

Forex gain 15,000 Gain on FC 5,000
Cash 2,610,000 FC receivable 2,605,000

FC payable 2,620,000
Cash 2,620,000

#2 Hedged item Hedging instrument

1-Oct-16 FC receivable 506,400

FC payable 506,400

31-Dec-16 Loss on FC 1,200

FC receivable 1,200

Firm commitment 1,200

Gain on firm commitment 1,200

31-Mar-17 Equipment 506,400 FC receivable 2,400

Firm commitment 1,200 Gain on FC 2,400
Cash 507,600

Loss on firm commit 2,400

Firm commitment 2,400
Cash (fc) 507,600
FC receivable 507,600

FC payable 506,400
Cash 506,400
 1-Nov-16 31-Dec-16 1-Feb-17 #4 Option as fair value hedge
Strike price 41.5 41.5 41.5 1-Nov AR 4,140,000
Spot rate 41.4 41.3 41 Sales 4,140,000
Fair value of options 11,200 22,500 50,000
Intrinsic value 10000 20000 50,000 31-Dec Forex loss 10,000
Time value 1,200 2,500 0 AR 10,000

1-Feb Forex loss 30,000

OCI 10000 30,000 AR 30,000
P&L 1,300 -2,500
Cash (fc) 4,100,000
AR 4,100,000

#5 Option as cash flow hedge

1-Nov AR 4,140,000
Sales 4,140,000

31-Dec Forex loss 10,000

AR 10,000

1-Feb Forex loss 30,000

AR 30,000

Cash (fc) 4,100,000

AR 4,100,000
Inv Put options 11,200
Cash 11,200

Inv in put options 11,300

Gain on put option 11,300 1,300

Inv in put options 27,500

Gain on put option 27,500 -2,500

Cash 4,150,000
Cash (fc) 4,100,000
Inv in put options 50,000

Inv Put options 11,200

Cash 11,200

Inv in put options 11,300

Gain on put option 1,300 -8,700
OCI-CF Hedge reserve 10000

Inv in put options 27,500

Loss on put option 2,500
OCI-CF Hedge reserve 30,000

Cash 4,150,000 7,500

Cash (fc) 4,100,000
Inv in put options 50,000

OCI 40,000
Gain on put option 40,000