Which of the Following Is Not a Disclosure for Derivatives

question 26

Multiple Choice

Which of the following is not a disclosure for derivatives required under SFAS No.133?

• A) Firms must describe their risk management strategy and how particular derivatives
• Help accomplish their hedging objectives.
• B) For fair value and cash flow hedges, firms must disclose the net gain or loss recognized
• In earnings resulting from the hedges' ineffectiveness and the line item on the income statement that includes this net gain or loss.
• C) For cash flow hedges, firms must describe the transactions or events that will result
• In reclassifying gains and losses from other comprehensive income to net income
• And the estimated amount of such reclassifications during the next 12 months.
• D) The specifics of a model that simulates with a 95 percent or other confidence level the minimum, maximum, or average amount of loss that a firm would incur.

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Definitions:

Social Scripts

Schemas about sequences of events and actions expected to occur in particular settings, guiding behavior in social situations.

Situational Attributions

The process of assigning the cause or blame of a behavior to external situations or environments rather than to personal disposition.

Superordinate Goals

Shared objectives that require cooperation among individuals or groups that usually are in conflict, leading to collaboration and conflict resolution.

Physical Attractiveness

The degree to which a person's physical traits are considered aesthetically pleasing or beautiful according to societal standards.