Question 5 Marks: 10 Suggested time allocation: 18 Minutes Based on the accounting standards applicable to financial instruments AASB 9 Financial Instruments, answer the following questions Required: (1 mark) (a) Explain what is meant by hedge accounting. State the three main types of hedges (b) (3 marks) Explain what is meant by a hedged item (c) (1 mark) (d) Explain what is meant by a hedging instrument. (1 mark) (e) Explain how gains and losses on a hedging instrument is treated for a fair value hedge. (2 marks) (f) Explain how gains and losses on a hedging instrument is treated for a cash flow hedge. (2 marks)