Gains and losses on derivatives not designated as hedges of a specific risk, gains and losses on fair value hedges, and the ineffective portion of cash flow hedges affect net income simultaneously with changes in fair value.

Question

Quizplus · Accepted Answer

Gains and losses on derivatives not designated as hedges of a specific risk, gains and losses on fair value hedges, and the ineffective portion of cash flow hedges are reported in net income and thus affect net income simultaneously with changes in fair value.

Gains and Losses on Derivatives Not Designated as Hedges of a Specific