Gains and losses relating to the effective portion of the hedging instrument are recognized
A) in other comprehensive income
B) in profit and loss
C) by increasing or decreasing the valuation reserve
D) by increasing or decreasing the asset

Question

Quizplus · Accepted Answer

Gains and losses relating to the effective portion of the hedging instrument are recognized in other comprehensive income, reflecting their status as unrealized gains or losses that are not included in net income until the hedged item affects profit or loss.

Gains and Losses Relating to the Effective Portion of the Hedging