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Some Financial Instruments Are Called Derivatives

question 11

Essay

Some financial instruments are called derivatives. Why? According to the FASB, should gains and losses on a fair value hedge be recorded as they occur, or should they be recorded to coincide with losses and gains on the item being hedged?


Definitions:

Latency Recording

A variation of duration recording in which an observer records how long it takes a student to begin engaging in a behavior after the teacher instructs the student to perform it.

Interval Recording

A data collection method where the observation period is divided into intervals, and the presence or absence of behavior is recorded in each interval.

Counting Behavior

The process of systematically tallying instances of a specific behavior for the purpose of analysis or intervention.

Baseline

A term used to describe data collected from behavioral observations of a target behavior before intervention is implemented. Baseline data help teachers determine whether an intervention was effective by comparing the rate at which a behavior occurred before and after the intervention was implemented.

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