All derivatives, no exceptions, are carried on the balance sheet as either assets or liabilities at fair (or market) value.

Question

Quizplus · Accepted Answer

This statement is true. All derivatives, including both financial and non-financial derivatives, are carried on the balance sheet at fair or market value, either as assets or liabilities. This accounting rule is intended to reflect the economic reality that derivatives represent.

All Derivatives, No Exceptions, Are Carried on the Balance Sheet