How are derivative contracts generally accounted for?
A)Fair value.
B)Fair value with changes recorded through income.
C)Amortized cost.
D)Historical cost.

Question

Quizplus · Accepted Answer

Derivative contracts are generally accounted for at fair value with changes in their value recorded through income. This approach reflects the market value of the derivatives and captures the gains or losses in the financial statements as they occur.

How Are Derivative Contracts Generally Accounted For