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:

Creditor Beneficiary

A third party who benefits from a contract made between two other parties, especially in scenarios where one party promises to pay a debt owed to the third party.

Assigns

Individuals or entities to which rights or property are legally transferred or passed on.

Satisfactory Performance

The degree to which a task, responsibility, or duty is completed adequately or meets the expected standards.

Express Condition

A clearly stated, specific condition in a contract that must be met for the performance or continuation of that contract to be required.