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:

Net Loss

The amount by which expenses exceed revenues over a specific period, indicating a negative financial performance.

Break-even Point

The financial stage at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production.

Sales

The transactions involving the exchange of goods or services for payment.