A governmental fund reports derivative investments that qualify for hedge accounting. How are unrealized gains and losses on these investments reported in the government-wide financial statements?

a. They are not reported.

b. They appear on the governmental funds balance sheet as part of fund balancenonspendable.

c. Unrealized gains appear on the statement of net position as deferred inflows and unrealized losses appear as deferred outflows.

d. Unrealized gains appear on the statement of net position as deferred outflows and unrealized losses appear as deferred inflows.