Under U.S.GAAP,to qualify for hedge accounting which of the following conditions must be met?

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All of the above conditions must be met in order to qualify for hedge accounting under U.S. GAAP. Formal documentation of the hedging relationship is required to demonstrate the relationship between the hedging instrument and the hedged item. A derivative must be used specifically to hedge either fair value exposure or cash flow exposure. Finally, the hedge must be effective in achieving offsetting changes in fair value or cash flows between the hedged item and the hedging instrument.

Under USGAAP,to Qualify for Hedge Accounting Which of the Following Conditions