True or False

6- Companies use derivative contracts as hedges to minimize the adverse effects of changes in exchange rates on their cash flows. To do this, the derivatives must meet three conditions.

7- Companies use both cash flow hedges and fair value hedges to reduce foreign currency risk. The procedures for the two methods are the same.

8- When a company has a transaction that will be settled in a foreign currency at some time in the future, a forward contract may be used to limit the foreign exchange rate risk when the payment will be made.

9- In order for derivative transactions to qualify for hedging treatment, the transactions must be well documented

10- The requirements for financial instruments to be recognized as hedges under U.S. GAAP and International Financial Reporting Standards are the same.