Hedge accounting is which of the following?
A)describing all hedges in footnotes to accounting statements
B)deferring all recording of hedge profits and losses until the hedge is over
C)associating the derivative profit or loss with the instrument being hedged
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Hedge accounting involves associating the derivative profit or loss with the instrument being hedged. The other options (A and B) are not accurate descriptions of hedge accounting.

Hedge Accounting Is Which of the Following