FX gains and losses on cash flow hedges are initially reported in Other Comprehensive Income when they arise.

Question

Quizplus · Accepted Answer

FX gains and losses on cash flow hedges are initially reported in Other Comprehensive Income (OCI) to reflect the unrealized gains or losses on the hedging instrument due to changes in foreign exchange rates. These amounts are reclassified into earnings in the periods when the hedged forecasted transaction affects earnings.

FX Gains and Losses on Cash Flow Hedges Are Initially