Which Statement Is Correct About Hedge Accounting

question 35

Multiple Choice

Which statement is correct about hedge accounting?

• A)Hedge accounting must be reported in profit or loss.
• B)Hedge accounting must be reported in OCI.
• C)The financial effects of the hedging item and instrument offset 100% in hedge accounting.
• D)It permits the hedging item and the hedging instrument to be recorded in the same way.

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Definitions:

Controversial Industries

Sectors of industry that provoke public debate and disagreement, often due to ethical, environmental, or health concerns.

Polluting Industries

Industries that significantly contribute to contamination of the environment through the release of harmful substances or waste into the air, water, or soil.

Triple Bottom Line

An accounting framework that considers social, environmental, and financial impacts of decisions, aiming for a balance between profit, people, and the planet.

Context-Specific Actions

Actions or decisions made based on the particular details and circumstances of a given situation, often tailored to meet specific challenges or opportunities.