Under IFRS,which of the following statements is true?
A)The hedge of a forecasted transaction is accounted for using a fair-value hedge.
B)The hedge of a firm commitment is accounted for using a cash-flow hedge.
C)The gain or loss on a hedging instrument under a cash-flow hedge is first reported as other comprehensive income and then reclassified to income
When the hedged item affects income.
D)The gain or loss on a hedging instrument under a fair-value hedge is first reported as other comprehensive income and then reclassified to income
When the hedged item affects income.

Question

Quizplus · Accepted Answer

Under IFRS, the gain or loss on a hedging instrument in a cash-flow hedge is initially reported in other comprehensive income and then reclassified to profit or loss when the hedged item affects income.

Under IFRS,which of the Following Statements Is True