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

question 1

Multiple Choice

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

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

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Definitions:

Sequence

A specific order in which related events, movements, or things follow each other.

Avoidant Attachment

A form of attachment characterized by difficulty in establishing close relationships as a result of fearing rejection and emotional closeness.

Ambivalent/Resistant Attachment

A form of insecure attachment where children typically exhibit clinginess and difficulty being soothed but resist or reject the caregiver when they attempt to offer comfort or affection.

Secure Attachment

A bond between a child and caregiver characterized by trust and confidence, resulting from the caregiver's consistent response to the child's needs.