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:

Influence Tactics

Strategies or actions used to persuade or convince others to follow one's direction or to gain their support.

Distributive Justice

The perceived fairness of the allocation or distribution of resources or rewards among individuals or groups in a society.

Individual Rights

Basic freedoms and protections that belong to every single person, safeguarding their autonomy and dignity against infringement.

Utilitarian Outcomes

Decisions or actions that are made based on the principle of generating the greatest good for the greatest number of people.