[Vanessachy]

FASB ASC 815-10-25-1 (Derivatives and Hedging—Recognition) provides for all of the following except:

A. derivatives should be recognized as assets or liabilities on the financial statements.

Incorrect B. derivatives should be reported at fair value.

C. derivatives should be reported at cost.

D. gains and losses from hedge transactions are accounted for in different ways, depending on whether it is designated and qualifies for hedge accounting.

I thought recognize derivatives at cost, why answer is c? Revalue at FV each period on BS

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[marqzho]

You are talking about “Record”. That answer is “Report”.

REG 90
FAR 95
AUD 98
BEC 84

[Vanessachy]

OMG, it is so confusing

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[Lidis]

Initially derivatives are recorded at cost, but reported in the B/S at FV ( Trading and AFS Securities)
HTM are reported at cost.

The answer is C, because not all the securities are reported at cost.

[Author]

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