How the unrealized gain or loss related to the derivative

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Question - Company A has a derivatives financial instrument that was reported as 5000 liability on the prior period's balance sheet. At the end of the current period. it is determined that a $ 15,000 asset needs to be reported on the balance sheet for this derivative. this is the result of a change in the fair value of the derivatives and the company's position on the derivative. The derivative is hedging a risk associated with an asset shown on the company's balance sheet. The fair value of this asset decreased during the current period by $ 19,000.

Required - Determine how the unrealized gain or loss related to the derivative and the associated asset are reported under each of the following circumstances (include the amount)

1) Hedge accounting does not apply to the derivatives

2) The derivative is accounted for as a fair value hedge

3) The derivative is accounted for as a cash flow hedge

Reference no: EM133057895

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