Under IFRS,a hedging relationship qualifies for special hedge accounting rules,only if it meets five conditions.
Required:
Explain the five conditions that must be met for a derivative to qualify for special hedge accounting.Identify what qualifies as a "hedged item".Identify what qualifies as a "hedging instrument".Outline the conditions required for a hedge to be "highly effective with respect to foreign exchange risk".

Question

Quizplus · Accepted Answer

The Answer of Under IFRS,a hedging relationship qualifies for special hedge accounting rules,only if it meets five conditions.
Required:
Explain the five conditions that must be met for a derivative to qualify for special hedge accounting.Identify what qualifies as a "hedged item".Identify what qualifies as a "hedging instrument".Outline the conditions required for a hedge to be "highly effective with respect to foreign exchange risk".

Under IFRS,a Hedging Relationship Qualifies for Special Hedge Accounting Rules,only