In general, derivative instruments are

Question 4 options:

a)

Not reported in a company's balance sheet because their impact on the company is not yet known.

b)

Reported in the balance sheet at fair value and changes in their fair value are reported in earnings.

c)

Reported in the balance sheet at historical cost and changes in their fair value are reported in earnings.

d)

Reported in the balance sheet at fair value and changes in their fair value are reported in other comprehensive income.