How to Pass the FAR CPA Exam | Accounting for Derivatives & Hedging | Fair Value/Cash Flow Hedge

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Derivatives & hedging is a topic that you should be familiar with on the CPA exam.
Derivatives are financial instruments that originates its value from the value of some other financial instrument. A derivative is the bet on whether the value of an investment will either go up or down. The general purpose of derivatives is to help determine risk.

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