The U.K.Equity account "Hedging reserve" is reported on a U.S.GAAP balance sheet as
A)capital reserve.
B)revaluation reserve.
C)capital in excess of par.
D)an accumulated other comprehensive income account.

Question

Quizplus · Accepted Answer

The "Hedging reserve" account is a type of accumulated other comprehensive income account that holds unrealized gains or losses from hedging activities. Therefore, the best choice is (D) an accumulated other comprehensive income account. The other choices (capital reserve, revaluation reserve, and capital in excess of par) do not accurately reflect the nature of this account.

The UKEquity Account "Hedging Reserve" Is Reported on a U