Business Finance Homework Help

Part 1 

Many companies make annual reports available on their corporate web page, often under an Investors tab. Annual reports also can be accessed through the SEC’s EDGAR system at the U.S. Securities and Exchange Commission (Links to an external site.) (under Filings, click “Company Filings Search,” type in Company Name, and access the latest 10K report.)

Access the most recent annual report for International Flavors & Fragrances (IFF) to respond to the following items:

Identify the location(s) in the annual report where IFF provides disclosures related to its management of foreign exchange risk.

Determine the types of hedging instruments the company uses and the types of hedges in which it engages.

Determine the manner in which the company discloses the fact that its foreign exchange hedges are effective in offsetting gains and losses on the underlying items being hedged. 200 words 

Part 2 

Many companies make annual reports available on their corporate website, often under an Investors tab. Annual reports also can be accessed through the SEC’s EDGAR system at U.S. Securities and Exchange Commission (Links to an external site.) (under Filings, click “Company Filings Search,” type in Company Name, and under Filing Type, search for “10-K.”).

• Access the most recent annual report for a U.S.-based multinational company of your choice and respond to the following items:
• Identify the location(s) in the annual report that provides disclosures related to the translation of foreign currency financial statements and foreign currency hedging.
• Determine whether the company’s foreign operations have a predominant functional currency.
• Determine the amount of re-measurement gain or loss, if any, reported in net income in each of the three most recent years.

Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years.

Determine whether the company hedges net investments in foreign operations. If so, determine the type(s) of hedging instrument used.