Which of the Following Is Not True

Which of the following is not true?

A) A firm must recognize derivatives on its balance sheet as assets or liabilities, depending on the rights and obligations under the contract.
B) Firms must remeasure derivatives to fair value each period.
C) The change in fair value either increases or decreases the balance sheet carrying value of the derivative asset or liability.
D) The change in fair value affects either (1) net income immediately (like a trading security) , or (2) other comprehensive income immediately and net income later (like securities available-for-sale) .
E) The income effect of a change in the fair value of a derivative is independent of the purpose for which a firm acquires the derivative and whether the firm chooses to apply hedge accounting.