Which of the Following Is Not a Criterion That Must

question 16

Multiple Choice

Which of the following is not a criterion that must exist for hedge accounting to function:

• A) Item to be hedge exposes the enterprise to price, currency, or interest rate risk.
• B) The hedge position reduces the exposure.
• C) The hedge position is designated as a hedge.
• D) The enterprise would suffer a loss in the absence of the hedge.