Under IFRS,a Hedging Relationship Qualifies for Special Hedge Accounting Rules,only

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The Answer is All five of the following conditions must be met for a hedging relationship to qualify for special hedge accounting:
1.the hedging relationship is formally designated and documented at the inception and is within the company's overall risk management strategy;
2.the hedge is anticipated to be highly effective;
3.for cash flow hedges,the forecast transaction is highly probable;
4.the effectiveness of the hedge can be determined reliably;and
5.the hedge is assessed regularly on an ongoing basis and has been highly effective in the past.
The hedging item can be an asset,liability,unrecognized future commitment,a highly probable forecast transaction or a net investment in a foreign subsidiary.
The hedging instrument offsets the risk and is normally a derivative,which could include a forward contract,futures contract,option or a swap.For currency hedges,a non-derivative financial asset or liability can also qualify as a hedging instrument.
For a hedge to be highly effective with respect to foreign exchange risk,it must meet the following two conditions:
1.At inception,the hedge must be expected to be highly effective in offsetting changes in fair value or cash flows due to foreign currency risk.The effectiveness is tested at each subsequent reporting date.
2.The actual results of the gain or loss on the hedging instrument must be between 80% and 125% of the loss or gain of the hedged item.

Under IFRS,a Hedging Relationship Qualifies for Special Hedge Accounting Rules,only

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