Which of the following is not one of the conditions that must be met under GAAP for a company to utilize hedge accounting treatment?

Group of answer choices

The swap term must be under 10 years and 90% fair value of the underlying.

The derivative is utilized to hedge either fair value exposure to foreign exchange risk or cash flow exposure.

The derivative is tested and found to be highly effective in offsetting the changes in the cash flows or fair value relative to the hedged item

The company has documented its hedge effectiveness testing and ability to meet the GAAP requirements for hedging.