Which of the Following Is/aretrue

question 110

Multiple Choice

Which of the following is/aretrue?

• A)Derivatives designated as cash flow hedges or fair value hedges receive special accounting treatment.
• B)The choice between the derivatives designation of cash flow hedges or fair value hedges depends on the firm's general hedging strategy and its purpose in acquiring the particular derivative instrument.
• C)According to U.S.GAAP, if a firm does not designate a particular derivative as either a fair value hedge or a cash flow hedge, the firm must account for the derivative as if it were a trading security
• D)According to IFRS, if a firm does not designate a particular derivative as either a fair value hedge or a cash flow hedge, the firm must account for the derivative as a security at fair value through profit and loss.
• E)all of the above

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Definitions:

Reliable Source

A credible or trustworthy origin of information or data, often used in research or decision-making.

Source of Electricity

Any process or system that produces electric power, including fossil fuels, nuclear power, and renewable sources like solar, wind, and hydroelectric power.

Human Capital

The capabilities, expertise, and insight that a person or group holds, considered in relation to their worth or expense for a company or nation.

Development Gap

The disparity in economic and social conditions, including income, education, and health, between the world's richest and poorest countries.