Which of the following is NOT one of the conditions that must be met to qualify for hedge accounting?
A)The effectiveness of the hedge can easily be determined.
B)The hedge relationship must be designated and documented.
C)The hedge is assessed at the beginning and at the end of the hedging period.
D)The hedge is expected to be effective.

Question

Quizplus · Accepted Answer

The condition that the hedge must be assessed at the beginning and at the end of the hedging period is not a requirement for qualifying for hedge accounting. Hedge effectiveness is typically assessed on an ongoing basis, not just at the beginning and end.

Which of the Following Is NOT One of the Conditions