Which of the Following Statements Is Correct with Respect to GASB

question 66

Multiple Choice

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

• A) Changes in the value of hedge derivatives are reported in the Statement of Net Assets.
• B) If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the statement of net assets.
• C) Statement No. 53 does not apply to proprietary or fiduciary funds.
• D) Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.

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Definitions:

Desmosomes

A type of cell junction made of protein that connects the cytoskeletons of adjacent cells in a tissue.

Intercalated Discs

Specialized connections between cardiac muscle cells that facilitate the synchronized contraction of the heart.

Contraction

The process of muscle fibers shortening and generating force, resulting in the movement or stabilization of parts of the body.