Which is a true statement regarding the fundamental requirement of accounting for derivatives?
A) Derivatives are reported on the balance sheet only as an asset.
B) Derivatives are reported on the balance sheet only as a liability.
C) Changes in derivative cost basis are recorded in the asset value.
D) Changes in derivative fair value are included in comprehensive income.
E) Changes in derivative cost basis are recorded in the liability value.

Question

Quizplus · Accepted Answer

Changes in the fair value of derivatives are included in comprehensive income, reflecting gains or losses from these financial instruments.

Which Is a True Statement Regarding the Fundamental Requirement of Accounting