Which Step Is Not Required for Hedge Accounting Under IFRS

question 51

Multiple Choice

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.

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Definitions:

Endorphins

Biochemical substances in the human body that act on the nervous system to reduce pain and boost pleasure, resulting in feelings of well-being.

Cardiac Arrest

A sudden loss of blood flow resulting from the failure of the heart to effectively pump.

Dopamine

A neurotransmitter involved in controlling movement and the reward centers in the brain.

Reward System

A group of neural structures associated with pleasure, motivation, and reinforcement learning, fundamentally influencing human and animal behavior.