Which of the following is/aretrue regarding the fair value option for marketable securities and derivatives?
A) Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives in Other Comprehensive Income.
B) Subsequent to the acquisition of a derivative, the firm may report changes in fair value of derivatives, but they have no effect on any lines of the statement of cash flows.
C) Firms using the fair value option mark the carrying value of the asset to fair value each period.
D) If the change in fair value of the derivative decreases carrying value, then the firm reports the amount of that decrease as a loss during the current period.
E) all of the above
Correct Answer:
Verified
Q76: Bonds Payable on the balance sheet of
Q77: Firms engage in transactions involving derivatives.For the
Q78: Prepayments for Julianna Company decreased by $2,000
Q79: Amortization of the premium on bonds payable
Q80: The extent to which a firm adjusts
Q82: Which of the following items involving current
Q83: Which of the following transactions would not
Q84: Zanies Corporation reports its income from investments
Q85: A company's income statement disclosed $45,000 of
Q86: In U.S.GAAP, which of the following accurately
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents