True or False: The method selected to disclose interest-rate risk should reflect how that risk is actually managed.

The statement is true because the method chosen to disclose interest-rate risk should align with the actual risk management practices used by an organization. Proper disclosure of interest-rate risk involves providing relevant information that reflects the strategies that management employs to mitigate or manage that risk. This ensures that stakeholders, such as investors, creditors, and regulators, are fully informed of the company's exposure to interest-rate fluctuations and the steps taken to address those risks.

When the disclosure methods are in harmony with actual management practices, it promotes transparency and enhances the credibility of the financial statements. This practice allows stakeholders to better understand the company's risk profile and assess its financial health in regard to interest-rate changes. Accurate reflection of risk management strategies in disclosures is crucial for effective communication and decision-making by stakeholders.