Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:
Posted: Wed Mar 16, 2022 9:26 am
Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:
A. the trader acquires additional exposure in the hedged item.
B. the hedging instrument is sold, terminated or exercised.
C. the hedged item is sold or settled.
D. a hedge fails the effectiveness test.
A. the trader acquires additional exposure in the hedged item.
B. the hedging instrument is sold, terminated or exercised.
C. the hedged item is sold or settled.
D. a hedge fails the effectiveness test.