What is an accurate statement regarding required NFP reporting of derivatives used to hedge forecasted transactions?
A) Similar to governments, NFPs can report changes in the value of derivatives used for hedging as deferred inflows/outflows on the balance sheet rather than reporting gains and losses on the operating statement.
B) Similar to businesses, NFPs can report changes in the value of derivatives used for hedging as adjustments to OCI rather than reporting gains and losses on the operating statement.
C) NFP organizations do not report unrealized gains and losses on hedge investments.
D) NFP reporting standards do not allow any special hedge accounting for hedges of forecasted transactions.
Correct Answer:
Verified
Q56: Use the following information to answer Questions
Q57: Use the following information to answer Questions
Q58: Use the following information to answer Questions
Q59: During the year, the United Way receives
Q60: Make-A-Wish Foundation invests in derivatives hedging the
Q62: A private NFP organization reports interest rate
Q63: A private NFP organization reports gains on
Q64: A donor contributed $100,000 in cash to
Q65: At the beginning of 2020, a
Q66: At the beginning of 2020, a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents