The gains and losses from fair value hedges are reported in earnings.

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Fair value hedges are derivatives that are used to offset changes in the fair value of an asset or liability. Any gains or losses from fair value hedges are reported in earnings, as the purpose of these hedges is to offset unrealized gains or losses on the hedged item. This is in contrast to cash flow hedges, where the gains and losses are reported in other comprehensive income until the underlying transaction affects earnings.

The Gains and Losses from Fair Value Hedges Are Reported