If a financial instrument is classified as a cash flow hedge,then

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For a cash flow hedge, the effective portion of its gains or losses is reported in other comprehensive income (a component of equity on the balance sheet) until the forecasted transaction occurs. If a fiscal year-end occurs before the settlement date of the hedged item, the gains or losses remain in equity and are not recognized in the income statement until the hedged transaction affects earnings.

If a Financial Instrument Is Classified as a Cash Flow