To the extent that the hedged relationship ceases to be effective, the hedging instrument's gains/losses should be transferred from the reserve and recognized in:

The correct answer is A. Assets. See the full explanation below for the reasoning.

Question

To the extent that the hedged relationship ceases to be effective, the hedging instrument’s gains/losses should be transferred from the reserve and recognized in:

Options

AAssets
BReceivables
CIncome
DExpense

How the community answered

(36 responses)

A
75% (27)
B
3% (1)
C
8% (3)
D
14% (5)

Community Discussion

No community discussion yet for this question.

Full IIA-CFSA Practice