Under FAS 133, any FX gain or loss on an FX forward used to hedge an exposed asset or liability position must be recognized currently in the earnings.

Question

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Under FAS 133 (Accounting for Derivative Instruments and Hedging Activities), any FX (foreign exchange) gain or loss on an FX forward contract that is used to hedge an exposed asset or liability position must be recognized currently in earnings, reflecting the changes in fair value of the hedging instrument.

Under FAS 133, Any FX Gain or Loss on an FX