Which of the Following Statements Is Correct with Respect to GASB

Multiple Choice

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

A) Changes in the value of hedge derivatives are deferred and reported in the Statement of Net Position.
B) If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the Statement of Net Position.
C) Statement No. 53 does not apply to proprietary funds.
D) Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.