The Accounting for Fair Value Hedges Is Similar Under Both

The accounting for fair value hedges is similar under both U.S.GAAP and IFRS. Which of the following is/aretrue?

A) Firms remeasure both the hedged item and the related derivative instrument (the hedging instrument) to fair value each period.
B) Firms remeasure both the hedged item and the related derivative instrument (the hedging instrument) to recognize gains and losses from changes in the fair value of both in net income.
C) If the hedge is fully effective, the gain (loss) on the derivative will precisely offset the loss (gain) on the asset or liability hedged.The net effect on earnings is zero.
D) If the hedge is not fully effective, the net gain or loss increases or decreases earnings to the degree the offset is incomplete.
E) all of the above