Which of the following statements is correct with respect to establishing reporting requirements for governments entering into derivative instruments?

Question

Quizplus · Accepted Answer

If a derivative is effective in reducing a government's exposure to identifiable risks, the changes in the value of the derivative are reflected as deferred outflows or deferred inflows in the period that the value changes. The deferred gains or losses typically are recorded as deferred outlfows or deferred inflows and continue to be reported this way until the hedged transaction occurs.

Which of the Following Statements Is Correct with Respect to Establishing