Question: On Dectmber 3 1 , Year 1 , the end of its fiscal year, Smari Compary held a derivative instrument which is had acquired for

On Dectmber 31, Year 1, the end of its fiscal year, Smari Compary held a derivative instrument which is had acquired for speculative purposes during November, Year 1. Since its acquisition the far value of the derivative had increased materially. On Docember 31, how shouid the increase in fair vatue of the Gerlvative instrumert bo roportod by Smarti in is financial statements?
A. Recognized as a deferred credit unblit the instrument is setted.
B. Recognized in current net income for Year 1.
C. Recognized as a component of other comprehensive income for Year 1.
D. Disregarded unbil the instrument is setted.
On Dectmber 3 1 , Year 1 , the end of its fiscal

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