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Which one of the following is an example of hedge accounting for a U.S. company? A. Remeasurement gains and losses on international subsidiaries are reported

Which one of the following is an example of hedge accounting for a U.S. company?

A.

Remeasurement gains and losses on international subsidiaries are reported in income as incurred; changes in the value of related hedges are also reported in income as incurred.

B.

Changes in the U.S. dollar value of foreign currency denominated purchase orders for merchandise are an adjustment to the inventory value when delivered.

C.

Gains and losses on forward contracts not qualifying as hedges are reported in income as incurred.

D.

Changes in the U.S. dollar value of euro-denominated receivables are reported in income; changes in the value of the related hedge are also reported in income.

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