Which of the Following Items Is Not a Required Condition

question 5

Multiple Choice

Which of the following items is not a required condition for applying hedge accounting?

• A) The hedge is expected to be highly effective.
• B) The forecast transaction does not affect profit or loss.
• C) The effectiveness of the hedge can be reliably measured.
• D) The hedge is assessed on an ongoing basis.

---

Definitions:

Ordinary Matters

Refers to standard, routine, or usual issues or tasks, often contrasted with extraordinary or exceptional matters.

Greater-Than-Majority Vote

A voting system where an action or proposal is passed only if it receives more than half of the votes cast, often requiring a significant majority such as two-thirds or three-quarters for approval.

Confidential Corporate Information

Sensitive business information not disclosed to the public, including trade secrets, internal strategies, and proprietary data.

Directors

Individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.