Gains and losses on effective cash flow hedges are reported initially in

Name: Gains and losses on effective cash flow hedges are reported initially in
Brand: Quizplus
Rating: 4.7 (52 reviews)

Question

Quizplus · Accepted Answer

Gains and losses on effective cash flow hedges are reported initially in accumulated other comprehensive income. This is because the hedge is designed to protect cash flows from changes in market value, not to generate income or losses. The gains and losses are later reclassified to net income when the hedged transaction affects earnings.

Gains and Losses on Effective Cash Flow Hedges Are Reported