Which of the following is not one of the three conditions that must be satisfied in order
Question:
Which of the following is not one of the three conditions that must be satisfied in order for a foreign currency forward contract to be accounted for as a hedge, that is, using hedge accounting?
a. The forward contract is used to hedge a cash flow exposure to foreign exchange risk.
b. The forward contract is highly effective in offsetting changes in the cash flows related to the hedged item.
c. The forward contract is properly documented as a hedge.
d. The forward contract is purchased in an officially recognized foreign currency market.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Advanced Accounting
ISBN: 9781266268533
9th International Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Question Posted: