- Write out (FS impacts through increases and decreases) for a fair value hedge (of an AFS security) and a cash flow hedge (e.g. accounts receivable). a) how is the income statement, OCI, and total equity impacted? b) what would be different in a) if you didn't qualify for hedge accounting? c) what would be different in the fair value hedge if you were hedging against a trading security? Based on this answer, why might companies be less likely to use hedge "accounting" for a trading security? - Write out (FS impacts through increases and decreases) for a fair value hedge (of an AFS security) and a cash flow hedge (e.g. accounts receivable). a) how is the income statement, OCI, and total equity impacted? b) what would be different in a) if you didn't qualify for hedge accounting? c) what would be different in the fair value hedge if you were hedging against a trading security? Based on this answer, why might companies be less likely to use hedge "accounting" for a trading security