I’m not really sure I understand the difference between these two. In both cases, FV is used on the B/S, and both realized and unrealized G/L’s go on the income statement.
Designated FV option is primarily used by companies for hedging purposes - in order to reduce volatility on the income statement and also from differences / inconsistencies because of measuring assets / liabilities using different valuation bases. Otherwise this is very similar to the Held for Trading option.
Yes, but how does it differ when you decide to use it? Does it record anything differently?
do not know enough to comment… possibly you put it on the footnotes and you cannot change once so designated.
you might be right, because the word they used was irrevocable.