A) in a Fair Value Hedge, the Entity Uses a Hedging

question 58

Multiple Choice

• A) In a fair value hedge, the entity uses a hedging instrument to hedge against the fluctuation in the fair value of the hedged item. This method will be used when the hedged item will be valued at fair value.
• B) In a cash flow hedge, the entity uses a hedging instrument to hedge against the fluctuation in the Canadian dollar value of future cash flows.
• C) The gain or loss on the hedging instrument in a cash flow hedge is initially reported in other comprehensive income and reclassified to profit and loss when the hedged item affects profit.
• D) The gain or loss on the hedging instrument in a fair value hedge is initially recognized in other comprehensive income and transferred to profit and loss when the hedged item has be revalued for accounting purposes in accordance with IFRS.

Recognize the importance of ethics in marketing and business decisions.

Understand the role of laws in shaping business ethics and ethical behavior.

Identify the influence of societal and cultural norms on ethical behavior.

Understand the concept of social responsibility and its application in business.

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Definitions:

Medicine

The science and practice of diagnosing, treating, and preventing disease, as well as the drugs and therapies used in the treatment of illness.

mL

A metric unit of volume equal to one thousandth of a liter, commonly used for measuring liquids in medicine.

mg

An abbreviation for milligram, a unit of mass equal to one thousandth of a gram.

mL

Milliliter, a metric unit of volume equal to one thousandth of a liter.