Under IFRS, Which of the Following Statements About Hedging a Foreign

question 47

Multiple Choice

Under IFRS, which of the following statements about hedging a foreign currency risk of an accepted purchase order is TRUE?

• A)It can be accounted for using either a fair-value hedge or a cash-flow hedge.
• B)It is not eligible for hedge accounting until it becomes an accounts payable.
• C)It must be accounted for using a fair-value hedge.
• D)It must be accounted for using a cash-flow hedge.

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Definitions:

N3

A stage of deep sleep characterized by non-rapid eye movement, previously known as slow-wave sleep or delta sleep.

Waking Consciousness

is the state of awareness of one’s thoughts, feelings, and surroundings during the waking hours, characterized by alertness and mental clarity.

Attention

The mental activity of focusing intently on a single element of the surroundings while disregarding other aspects.

Circadian Cycle

The internal biological clock that regulates approximately 24-hour cycles of biological processes in organisms.