Which of the Following Statements Is Correct with Respect to GASB

question 8

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 deferred and reported in the Statement of Net Position.
• 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 Position.
• C) Statement No. 53 does not apply to proprietary funds.
• D) Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.

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Definitions:

Small Retailers

Independent or local retail businesses that operate on a smaller scale compared to large chains, focusing on a specific market segment or community.