Under ASC 815, a cash flow hedge is used to hedge

Under ASC 815, a cash flow hedge is used to hedge

Under ASC 815, a cash flow hedge is used to hedge:

A. The fair value of a fixed asset

B. The variability in cash flows from a forecasted transaction

C. The interest rate on a debt instrument

D. The foreign exchange risk of a subsidiary

Answer: B

Explanation: ASC 815-20-25-1: Cash flow hedges hedge variability in cash flows from forecasted transactions (e.g., foreign currency, interest rates).