Which of the following is/are true?
a. U.S. GAAP and IFRS allow firms to choose whether to designate a particular derivative as a hedge, and therefore eligible for hedge accounting.
b. Firms remeasure derivatives not designated as a hedge to fair value at every balance sheet date and include changes in fair value in net income.
c. For a derivative designated as a hedge, firms must further designate it as hedging the risk of a change in fair value (fair value hedges) or a change in cash flows (cash flow hedges).
d. all of the above
e. none of the above
D
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