Which of the following are requirements for hedge accounting?
A)Reasonable expectation of hedge effectiveness.
B)An existing risk management strategy involving hedging.
C)Designation and documentation of the hedging relationship.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these answers are correct because hedge accounting requires a reasonable expectation of hedge effectiveness, an existing risk management strategy involving hedging, and the designation and documentation of the hedging relationship to ensure transparency and effectiveness in financial reporting.

Which of the Following Are Requirements for Hedge Accounting