Which of the Following Statements Is NOT Correct

question 7

Multiple Choice

Which of the following statements is NOT correct?

• A) In a fair value hedge, the entity uses a hedging instrument to hedge against the fluctuation in the fair value of the hedged item. This method will be used when the hedged item will be valued at fair value.
• B) In a cash flow hedge, the entity uses a hedging instrument to hedge against the fluctuation in the Canadian dollar value of future cash flows.
• C) The gain or loss on the hedging instrument in a cash flow hedge is initially reported in other comprehensive income and reclassified to profit and loss when the hedged item affects profit.
• D)The gain or loss on the hedging instrument in a fair value hedge is initially recognized in other comprehensive income and transferred to profit and loss when the hedged item has be revalued for accounting purposes in accordance with IFRS.

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Definitions:

Menstrual Cramping

Painful sensations felt in the lower abdomen that can occur before or during a menstrual period.

Cold Therapy

The use of cold temperatures in medical treatment to reduce pain, inflammation, and muscle spasm.

Circulatory Insufficiency

A condition where the circulatory system fails to supply adequate blood flow to the body's tissues, potentially causing organ damage.

Heating Pad

A device that generates warmth, typically used to relieve pain or discomfort in various parts of the body.