Which step is not required for hedge accounting under IFRS?
A)Demonstration of hedge's effectiveness.
B)Identification of the risk exposure.
C)Payment of fees to the counterparty.
D)Designation of the hedging instrument.

Question

Quizplus · Accepted Answer

Payment of fees to the counterparty is not a required step for hedge accounting under IFRS. However, the identification of risk exposure, designation of the hedging instrument, and demonstration of hedge effectiveness are crucial steps for qualifying for hedge accounting treatment.

Which Step Is Not Required for Hedge Accounting Under IFRS