_____ in a Hedge of a Firm Purchase Commitment Using

Multiple Choice

_____ In a hedge of a firm purchase commitment using an FX forward, how should FX gains and losses occurring during the exposed liability position period be reported?

A) Recognize currently in earnings.
B) Defer until the transaction date.
C) Defer until the settlement date.
D) Recognize currently in earnings or defer (management's discretion) .
E) None of the above.