Which of the Following Is Not a Condition of Accounting

question 102

Multiple Choice

Which of the following is not a condition of accounting for hedge derivatives?

• A) The derivative is minimally effective in offsetting changes in the cash flows or fair value related to the hedged item.
• B) The derivative is properly documented as a hedge.
• C) The derivative is used to hedge a cash flow exposure to foreign exchange risk.
• D) The derivative is highly effective in offsetting changes in the cash flows or fair value related to the hedged item.
• E) The derivative is used to hedge a fair value exposure to foreign exchange risk.

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