Once an Entity Has Designated the Hedging Relationship and It

question 7

Multiple Choice

Once an entity has designated the hedging relationship and it qualifies for hedge accounting,it is classified as which one of three types of relationships:

• A) a fair value excess capital
• B) a cash flow analysis
• C) the hedge of a net investment in a foreign operation as defined in AASB 121 (para. 86)
• D) a fair value statement

---

Definitions:

Updated Yearly

Describes something, typically a document or software, that is reviewed and revised on an annual basis to ensure it contains the most current information or features.

Petty Cash

A small amount of cash on hand used for covering minor expenses in a business, such as office supplies or coffee.

Account

A report or description of an event or experience, or the management and arrangement of financial expenditure and receipts.

Commission

A fee or percentage allowed to agents or salespeople for their services.