Under USGAAP,to Qualify for Hedge Accounting Which of the Following Conditions

question 48

Multiple Choice

Under U.S.GAAP,to qualify for hedge accounting which of the following conditions must be met?

• A)There must be formal documentation of the hedging relationship.
• B)A derivative must be used specifically to hedge fair value exposure or cash flow exposure.
• C)The hedge must be effective.
• D)All of the above must be met in order to qualify for hedge accounting.

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Definitions:

Downstream Costs

Costs incurred after the production process, including distribution, marketing, and customer service expenses.

Business Process Re-engineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Work Flow

Work Flow is the sequence of processes through which a piece of work passes from initiation to completion, often in a business or manufacturing context.

Process Map

A visual representation of the steps involved in a process, showing how tasks are connected and flow from one to the next.