fair value hedge

[afranks1]

For a fair value hedge, realised gains and loses are recognised in the income statement. But what about unrealised gains and losses?

[Galli]

Good question!

I’m second guessing myself now but I originally thought fair-value hedges are always treated like a financial asset (derivative in this case) which means the change (unrealized) is recognized on the IS.

[S2000magician]

@afranks1

For a fair value hedge, realised gains and loses are recognised in the income statement.

For _ everything _, realized gains and losses are recognized on the income statement.

@afranks1

But what about unrealised gains and losses?

Income statement, too.

[afranks1]

Thanks

[S2000magician]

You’re welcome.