Chapter 17, Problem 2CE

To determine

Derivative: Derivative is a financial instrument whose value is derived from the underlying variable asset. These underlying assets can be market index, commodity, currency, or securities.

GAAP: GAAP is “Generally Accepted Accounting Principles.” It is standard guidelines which are commonly used for financial reporting. These guidelines are maintained by the AICPA (American Institute of Certified Public Accountants).

FASB: FASB is financial Accounting Standards Codification also known as GAAP (Generally Accepted Accounting Principles). It is a body of accounting experts who establish financial accounting standards.

To determine the guidance SEC gives for disclosures regarding accounting policies used for derivatives.

Given information: All the related information is provided in the question document.