All of the following are true statements when measuring hedge effectiveness except:
A. Effectiveness must be assessed at least annually when the company reports their annual financial statements.
B. Effectiveness means there is an approximate offset with the range of 80% to 125% of the changes in the fair value of the cash flows.
C. A company may elect to choose from several different measures for assessing hedge effectiveness.
D. Effectiveness means there is an approximate offset in fair value to the risk being hedged.
Answer: A
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