Under IFRS, Which of the Following Statements Is True

question 28

Multiple Choice

Under IFRS, which of the following statements is true?

• A)The hedge of a forecasted transaction is accounted for using a fair-value hedge.
• B)The hedge of a firm commitment is accounted for using a cash-flow hedge.
• C)The gain or loss on a hedging instrument under a cash-flow hedge is first reported as other comprehensive income and then reclassified to income when the hedged item affects income.
• D)The gain or loss on a hedging instrument under a fair-value hedge is first reported as other comprehensive income and then reclassified to income when the hedged item affects income.

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Definitions:

Brand Name

The name given to a product or service from a specific source used to distinguish it from others.

Important Attributes

Key features or characteristics of a product or service that are significant to consumers and can influence their purchasing decision.

Trial Stage

A phase in product adoption or marketing where consumers are given the opportunity to try a product or service before making a purchase decision.

Hierarchy of Effects

A model in marketing that describes the stages a consumer goes through, from awareness to knowledge, liking, preference, conviction, and finally the actual purchase.