A company recognizes a gain or loss from a fair value hedge:
A)On a deferred basis, with the gain or loss being reported in other comprehensive income in the interim.
B)Within 18 months of the gain or loss from the item being hedged.
C)Immediately in earnings along with the loss or gain from the item being hedged.
D)No gains or losses are reported on fair value hedges.

Question

Quizplus · Accepted Answer

According to the accounting standard ASC 815, gain or loss from a fair value hedge is immediately reported in earnings along with the loss or gain from the item being hedged.

A Company Recognizes a Gain or Loss from a Fair