In the United States, derivatives held for trading or speculative purposes are

Question

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Derivatives held for trading or speculative purposes are marked-to-market, which means they are revalued at their current market value at the end of each reporting period. This ensures that any gains or losses on the derivative are recognized in the financial statements in a timely manner. The original spot rate (A) and deferring and amortizing over the useful life (B) are not appropriate methods for valuing derivatives held for trading or speculative purposes. Foreign currency derivatives (D) are permitted but subject to specific accounting rules.

In the United States, Derivatives Held for Trading or Speculative