When preparing their year-end financial statements,the Warner Company includes a footnote regarding their hedging activities during the year.Which of the following is not required to be disclosed?
A)How hedge effectiveness is determined and assessed
B)The specific types of risks being hedged,and how they are being hedged
C)Alternative hedging options declined
D)The net gain or loss reported for the period for fair value hedges and where in the financial statements it is reported

Question

Quizplus · Accepted Answer

While disclosing the types of risks being hedged and how they are being hedged and the net gain or loss reported for the period for fair value hedges and where in the financial statements it is reported are required to be disclosed, alternative hedging options declined is not a required disclosure. However, if the company deems it significant, they may choose to disclose it. The disclosure of how hedge effectiveness is determined and assessed is also a required disclosure.

When Preparing Their Year-End Financial Statements,the Warner Company Includes a Footnote