Part C (10 Marks) a) AASB 9 Financial Instruments become effective from January 2018. This new standard replaced the old accounting standard AASB 139 Financial instrument. The hedge accounting is not mandatory under the new accounting standard (AASB 9). However, some companies are still using hedge accounting as part of the financial reporting. What is the purpose of hedge accounting in your opinion? (1 mark) b) Identify and briefly explain the three types of hedge accounting in accordance with AASB 9 Financial Instruments. I (3 marks) c) The spot rates and forward rates are commonly used in foreign currency transactions and hedge accounting. Briefly explain the difference between these two rates and when are these rates used appropriately. (6 marks)