$21$ polnt

Which of the following approaches is used in the United States in accounting for foreign currency transactions?

One$-$transaction perspective

Two$-$transaction perspective

Three$-$transaction perspective

None of the above.

$3$

$1$ polint

Which of the following is NOI a necessary condition for hedge accounting?

The derivative is actively traded on a market so fair values can be determined.

The derivative is properly documented as a hedge.

The derivative is used to hedge a cash flow or fair value exposure to foreign exchange risk.

The derivative is highly effective in offsetting changes in the cash flows or fair value related to the hedged item.