Question: A hedged firm purchase or sale commitment typically qualifies for fair value hedge accounting if the hedge is documented to be effective. Compare the accounting

A hedged firm purchase or sale commitment typically qualifies for fair value hedge accounting if the hedge is documented to be effective. Compare the accounting for both the derivative and the firm purchase or sale commitment under each of these circumstances:
(a) The hedge relationship is deemed to be effective and
(b) The hedge relationship is not deemed to be effective.

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