The Accounting for Fair Value Hedges Is Similar Under Both

question 11

Multiple Choice

The accounting for fair value hedges is similar under both U.S.GAAP and IFRS. Which of the following is/aretrue?

• A)Firms remeasure both the hedged item and the related derivative instrument (the hedging instrument) to fair value each period.
• B)Firms remeasure both the hedged item and the related derivative instrument (the hedging instrument) to recognize gains and losses from changes in the fair value of both in net income.
• C)If the hedge is fully effective, the gain (loss) on the derivative will precisely offset the loss (gain) on the asset or liability hedged.The net effect on earnings is zero.
• D)If the hedge is not fully effective, the net gain or loss increases or decreases earnings to the degree the offset is incomplete.
• E)all of the above

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Contact Information

Details that allow a person to be reached or communicated with, such as phone number, email address, or physical address.

Contact List

A collection of contact information for individuals or organizations, typically stored and managed in phones or email applications.

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A display format in contact management software that shows contact information in a layout resembling a physical business card.