Which of the following is done when accounting for a cash flow hedge, but is not done when accounting for a fair value hedge?
A. Foreign exchange gains or losses on the hedged asset or liability are recorded in net income.
B. Increases or decreases in a derivative's fair value are recorded in accumulated other comprehensive income.
C. Gains or losses resulting from adjusting the fair value of a derivative are recorded in net income.
D. The hedged asset or liability is adjusted to fair value.
Answer: B
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