Which of these does not qualify a hedging relationship for hedge accounting? A)The effectiveness of the hedge can be reliably measured B)The hedge is expected to be highly effective C)The change in fair value of the asset or liability is hedged D)Formal,detailed documentation of the hedge relationship exists,indicating the risk to be hedged,the hedge item and the hedge instrument

Question

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In order for a hedging relationship to qualify for hedge accounting, the change in fair value of the asset or liability must be hedged. Therefore, option C does not qualify for hedge accounting. The other options, A, B, and D are all requirements for a hedging relationship to qualify for hedge accounting.

Which of These Does not Qualify a Hedging Relationship for Hedge