13-39 If an FI Is a Counterparty to a Swap

question 90

True/False

13-39 If an FI is a counterparty to a swap arrangement,it must record the notational value of the swap as the market value.

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Definitions:

Revenue Recognition Principle

A concept of accounting that states that revenues are recorded when earned, which is when the services have been performed or products have been delivered to customers.

Recorded

The action of entering financial transactions into the accounting records of a business.

Recorded

The process of documenting financial transactions in the books of accounts as evidence of the transactions.

Relate

To establish a connection or relationship between two or more things.