A Private NFP Organization Reports Interest Rate Swaps in the Asset

A private NFP organization reports interest rate swaps in the asset section of its balance sheet, at about $2 million. The organization has variable rate debt and uses the swaps to change the interest payments to fixed payments. Which statement most accurately describes the required reporting for these swaps?

A) Interest rates have fallen and unrealized losses on the swaps are reported in the statement of activities.
B) Interest rates have fallen and unrealized losses on the swaps are reported as deferred outflows in the statement of financial position.
C) Interest rates have increased and unrealized gains on the swaps are reported in the statement of activities.
D) Interest rates have increased and unrealized gains on the swaps are reported as deferred inflows on the statement of financial position.