A company has fixed rate debt. It swaps the fixed payments for variable payments. If the company uses hedge accounting for the swap, how does the accounting differ from normal accounting?
A) Changes in the market value of the swap are reported in income.
B) Changes in the market value of the debt are reported in income.
C) Changes in the market value of the swap are reported in other comprehensive income.
D) Changes in the market value of the debt are not reported.
Correct Answer:
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