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How are gains and losses from cash flow hedges reported in the financial statements?

Cash flow hedges are hedges of the exposure to the variability of cash flows. These hedges are attributed to a particular risk that is associated with a recognized asset or liability as well as for forecasted transactions.

For cash flow hedges, the effective portion (gain) of the hedge will be recorded in OCI on the balance sheet while the ineffective portion (loss) is recorded to the income statement. The rules for cash flow hedges are different from fair value hedges.


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