Which of the Following Is Not a Condition That Must

question 47

Multiple Choice

Which of the following is not a condition that must be met,according to IAS 39,before a relationship qualifies for hedge accounting?

• A)At the inception of the hedge, there is formal designation and documentation of the hedging relationship.
• B)At the inception of the hedge, there is formal designation and documentation of the entity's risk management objective and strategy for undertaking the hedge.
• C)The hedge is expected to be highly effective.
• D)For fair-value hedges, a forecast transaction that is subject to the hedge must be highly probable.

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Definitions:

Middle Adulthood

A stage of adulthood typically ranging from about age 40 to 65, characterized by increased stability, maturity, and often a focus on family and career.

Younger Selves

Refers to an individual’s persona or state of being at an earlier stage of life.

Chronological Age

The amount of time that has passed since a person's birth, usually expressed in years.

Cognitive Competencies

The mental skills and abilities required to perform tasks, solve problems, and make decisions effectively.