Which of the following represents three criteria of which all must be met by a hedging relationship for it to qualify for hedge accounting?
A) the hedging relationship consists only of eligible hedging instruments and eligible hedged items
B) at the inception of the hedging relationship there is formal designation and documentation of the hedging relationship and the entity's risk management objective and strategy for undertaking the hedge
C) the hedging relationship meets hedge effectiveness requirements
D) all of the above
Correct Answer:
Verified
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Q13: The main objective of translating the financial
Q14: The 'spot' rate of exchange for foreign
Q15: AASB 121 requires the translation of financial
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Q18: An effective foreign currency hedging transaction will:
A)
Q19: AASB 121 requires that non-monetary items are
Q20: In relation to cash flow hedges,AASB 7
Q21: AASB 121 requires an entity to measure
Q22: Explain,using simple numerical examples,the hedging of currency
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