The FASB requires entities that hold or issue derivative instruments that are designated and qualify as hedging instruments to disclose information that allows users to understand in the case of both fair value and cash flow hedges, how the derivative instruments and the related hedged items affect the reporting entity's financial position, financial performance and cash flows.

Question

Quizplus · Accepted Answer

This is a true statement. The FASB requires such disclosure to help users understand the impacts of hedge accounting on the financial statements of reporting entities.

The FASB Requires Entities That Hold or Issue Derivative Instruments