Under IAS 39 Financial Instruments: Recognition and Measurement, when a fair value hedge instrument expires it:
A) must be transferred within equity to retained earnings;
B) remains permanently in equity;
C) must be discontinued retrospectively;
D) must be discontinued prospectively.

Question

Quizplus · Accepted Answer

When a fair value hedge instrument expires, the hedge accounting must be discontinued prospectively, meaning that the hedge relationship is terminated from that point forward.

Under IAS 39 Financial Instruments: Recognition and Measurement, When a Fair