6. Which of the following statements properly describes GAAP accounting for derivatives? A. The unrecognized...
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Accounting
6. Which of the following statements properly describes GAAP accounting for derivatives? A. The unrecognized gains or losses of a speculative derivative may be either included in ordinary income on the income statement when they occur or be included in Accumulated Other Comprehensive Income (AOCI) as a component of stockholders equity. B. All investments in derivative instruments must be reported within the balance sheet at fair market value. C. The unrealized holding gain or loss on a derivative instrument, which qualifies, as a cash flow hedge for a particular year should be reported as a component of income form continuing operations. D, Investments in derivative contracts, which qualify for hedge accounting, will most likely result in increased earnings volatility.
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