Which Statement Below Accurately Describes Reporting for a Cash Flow

Multiple Choice

Which statement below accurately describes reporting for a cash flow hedge of an inventory purchase?

A) Changes in the value of the hedge are reported in other comprehensive income until the inventory is sold.
B) Changes in the value of the hedge are reported in other comprehensive income until the inventory is purchased.
C) Changes in the value of the hedge are reported in income, along with changes in the forecasted purchase obligation.
D) Changes in the value of the hedge are reported in other comprehensive income, along with changes in the forecasted purchase obligation.