[PLEASE ANSWER ASAP

7.

Which of the following statements is TRUE about hedge accounting?

a. New requirements for hedge accounting under IFS 9 (Financial Instruments) are much more restrictive than previous requirements under IAS 39 (Financial Instruments).

b. Hedge accounting must be used if a fair value hedge has been established.

c. Hedge accounting must be used if a cash-flow hedge has been established.

d. Hedge accounting is an option, not a requirement.

8.

For speculative forward contracts, exchange gains and losses are recognized in profit

a. every time the exchange rate changes.

b. at the end of each fiscal year.

c. at the end of the contract.

d. at the end of each quarter.

9.

______exposure exists when assets translated at the forward exchange rate are larger than liabilities translated at the forward exchange rate.

a. Accounting

b. Economic

c. Transaction

d. Net asset

10

Under the presentation currency translation method, which item is NOT translated at the historical rate?

a. revenues

b. deferred revenues

c. depreciation

d. common shares

11

When a foreign currency weakens against the domestic currency, what effect will there be on financial statements translated using the ()? functional currency translation method (FCT) and on financial statements translated using the presentation currency translation method

a. FCT will result in foreign exchange gains and PCT will result in foreign exchange losses.

b. FCT will result in foreign exchange losses and PCT will result in foreign exchange gains.

c. Both FCT and PCT will result in foreign exchange losses.

d. Both FCT and PCT will result in foreign exchange gains.

12

Under ASPE, the presentation currency translation method (allowed under IFS) is referred to as the

a. self-sustaining method.

b. integrated method.

c. current rate method.

d. temporal method.