Which of the following is/are true?
a. Derivatives designated as cash flow hedges or fair value hedges receive special accounting treatment.
b. The choice between the derivatives designation of cash flow hedges or fair value hedges depends on the firm's general hedging strategy and its purpose in acquiring the particular derivative instrument.
c. According to U.S. GAAP, if a firm does not designate a particular derivative as either a fair value hedge or a cash flow hedge, the firm must account for the derivative as if it were a trading security
d. According to IFRS, if a firm does not designate a particular derivative as either a fair value hedge or a cash flow hedge, the firm must account for the derivative as a security at fair value through profit and loss.
e. all of the above
E
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Answer the following statement true (T) or false (F)
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