Where in the financial statements are changes in the fair value of cash flow hedges reported:
A) On the Balance Sheet as part of retained earnings
B) On the Income Statement as other gains/losses
C) As other comprehensive income and accumulated in other comprehensive income on the Balance Sheet.
D) On the Statement of Stockholder's Equity

Question

Quizplus · Accepted Answer

Changes in the fair value of cash flow hedges are reported in other comprehensive income and accumulated in other comprehensive income on the Balance Sheet. They are not reported on the Income Statement or the Statement of Stockholder's Equity, and they do not affect retained earnings directly.

Where in the Financial Statements Are Changes in the Fair