Which of the following statements correctly describes the steps to record a forward contract based on a firm commitment with a cash flow hedge? Question 7 options: a) The forward contract is not adjusted after the initiation date until the settlement date. b) At the date the forward contract is entered into, the forward contract is recorded. c) Any gains or losses on the forward contract are recorded in profit or loss. d) The hedged item (such as inventory or revenue) is recorded when the forward contract is entered into.On September 15, Elephant Inc. ordered 125,000 in inventory from a supplier in France. The goods are scheduled to be delivered on October 15, and payment in full is due at that time. Elephant immediately entered into a forward contract to purchase 125,000 on the scheduled delivery date. The inventory was received, and payment made on October 15. Elephant's year end is September 30. Exchange rate information follows: Date Spot rate Forward rate for delivery on October 15 September 15 1 = C$1.4000 1 = C$1.3925 September 30 1 = C$1.3800 1 = C$1.3775 October 15 1 = C$1.3500 1 = C$1.3500 Assume that Elephant prepares its financial statements in accordance