Split accounting treatment achieves hedge accounting treatment.

Name: Split accounting treatment achieves hedge accounting treatment.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Split accounting treatment refers to the separation of a financial instrument's components for accounting purposes, while hedge accounting treatment involves special accounting for hedging relationships to reflect the offsetting effects on profit or loss. They are distinct concepts and achieving one does not necessarily mean achieving the other.

Split Accounting Treatment Achieves Hedge Accounting Treatment