With respect to derivative instruments that are designated as hedges, the FASB calls for which of the following general disclosures?

Question

Quizplus · Accepted Answer

The FASB requires entities that hold or issue derivative instruments that are designated and qualify as hedging instruments to disclose information that allows users to understand:
1. How and why the reporting entity uses derivative instruments.
2. In the case of both fair value and cash flow hedges, how the derivative instruments and the related hedged items are accounted for.
3. In the case of both fair value and cash flow hedges, how the derivative instruments and the related hedged items affect the reporting entity's financial position, financial performance and cash flows.

With Respect to Derivative Instruments That Are Designated as Hedges