A Hedge Is Defined by AASB 139 as an Action

question 76

True/False

A hedge is defined by AASB 139 as an action taken,whether by entering into a foreign currency contract or otherwise,with the objective of maximising the possible positive effects of movements in exchange rates.

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Definitions:

World War II

A global conflict lasting from 1939 to 1945, involving most of the world's nations and marked by significant events, battles, and shifts in power.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, income, employment, industrial production, and wholesale-retail sales.

Stagflation

A situation in an economy where there is slow economic growth, high unemployment, and rising prices simultaneously.

Inflation

The escalation rate of average prices for goods and services, which deteriorates buying power.