Summary of Statement No. 20

Accounting for Forward Exchange Contracts—an amendment of FASB Statement No. 8 (Issued 12/77)

Summary

This Statement amended FASB Statement No. 8, Accounting for the Translation of Foreign Currency Transactions and Foreign Currency Financial Statements, to permit companies to defer amounts arising from forward contracts in excess of the related commitment to the extent that the forward contract was intended to provide a hedge on after-tax basis.