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:

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Owned, used, or experienced collectively by a group of people, suggesting collaboration or joint ownership.

Behaviors

The observable actions or responses of individuals, influenced by their environment, culture, and psychological aspects.

Empathizing Skill

The capacity to understand and share the feelings or thoughts of another person, promoting better interpersonal relations.

Dialogue

A conversation or exchange of ideas between two or more people aimed at reaching an understanding or resolving a problem.