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Explain what it means that friendships are typically between peers, and give examples of friendships in which this is not true.
Recognised Assets
Assets that have been formally acknowledged and recorded on the balance sheet due to their probable future economic benefits.
Unrecognised Firm Commitments
Obligations or agreements that a company has committed to, but are not yet recorded on the balance sheet because they do not meet the recognition criteria.
Hedge Effectiveness
A measure of the degree to which a hedge transaction reduces the risk of the underlying exposure it was intended to hedge.
Hedge Exposure
A risk management strategy used to reduce or mitigate the risk of adverse price movements in an asset, typically through the use of derivative instruments.
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