In general, GAAP rules for situations where a company "hedges" some asset call for recognizing the gain or loss on the "hedge" in a later time period than the gain or loss on the asset.

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GAAP rules generally require that the gain or loss on the hedge be recognized in the same period as the gain or loss on the hedged asset to ensure that the financial statements reflect the economic effects of the hedging relationship.

In General, GAAP Rules for Situations Where a Company "Hedges