Under US GAAP, Which of the Following Conditions Must Be Met

question 54

Multiple Choice

Under U.S. GAAP, which of the following conditions must be met to qualify for hedge accounting?

• A) There must be formal documentation of the hedging relationship.
• B) A derivative must be used specifically to hedge fair value exposure or cash flow exposure.
• C) The hedge must be effective.
• D) All of the above must be met in order to qualify for hedge accounting.

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Definitions:

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or on the entire Earth.

Species

The basic unit of biological classification, defined as a group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Ecosystems

Communities of interacting organisms and their physical environment, functioning as a unit.

Human-Centred

An approach or design philosophy that prioritizes the needs, preferences, and limitations of the end-users at every stage of the design process.