Which of the Following Is Not a Condition That Must

question 52

Multiple Choice

Which of the following is not a condition that must be met,according to AASB 139,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.
• E) None of the given answers.

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Definitions:

Ethical Leadership

A leadership style that is governed by principles of honesty, fairness, and integrity, where leaders prioritize ethical standards in their decision-making and behavior.

Follower Perception

The way in which subordinates view, understand, and interpret the actions, policies, and leadership styles of their superiors.

Transformation Behavior

Changes in behavior that significantly alter the existing manner of doing or being.

Individualized Consideration

A component of transformational leadership, focusing on the leader's attention to and support for the individual needs, abilities, and development of followers.