Which of the Following Is NOT a Condition for Hedge

question 16

Multiple Choice

Which of the following is NOT a condition for hedge accounting to be applied?

• A) There must be formal designation and documentation of the hedging relationship at the inception of the hedge.
• B) The effectiveness of the hedge must be able to be reliably measured.
• C) The hedge must be expected to be effective
• D) For cash flow hedges, the forecast transaction must be highly probable.

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Definitions:

Versions

Different editions or releases of a product, often differentiated by features or improvements.

No Price Discrimination

A pricing strategy where a seller charges the same price to all customers for a product or service, regardless of differences in cost to serve them or their varying valuations.

Low-Value Groups

Groups characterized by minimal economic or social worth within a given context.

High-Value Groups

refers to select groups of individuals or customers considered to have significant worth or potential value to a business, often due to their spending power or influence.