Beginning after December 1998, a new FASB rule relating to reporting about derivatives came into existence. The rule's primary requirement compels firms to:
A) Lay off any derivatives exposure prior to 12/31/2004
B) Clearly state the book value of derivative contracts and their possible effect on the firm's revenues
C) Report the market value of their derivative contracts and adjust earnings to reflect any changes in market value
D) All of the above
E) Choices B and C only

Question

Quizplus · Accepted Answer

The Answer of Beginning after December 1998, a new FASB rule relating to reporting about derivatives came into existence. The rule's primary requirement compels firms to:
A) Lay off any derivatives exposure prior to 12/31/2004
B) Clearly state the book value of derivative contracts and their possible effect on the firm's revenues
C) Report the market value of their derivative contracts and adjust earnings to reflect any changes in market value
D) All of the above
E) Choices B and C only

Beginning After December 1998, a New FASB Rule Relating to Reporting