Which of the Following Is Not a Condition That Must

Multiple Choice

Which of the following is not a condition that must be met,according to IAS 39,before a relationship qualifies for hedge accounting?

A) At the inception of the hedge, there is formal designation and documentation of the hedging relationship.
B) At the inception of the hedge, there is formal designation and documentation of the entity's risk management objective and strategy for undertaking the hedge.
C) The hedge is expected to be highly effective.
D) For fair-value hedges, a forecast transaction that is subject to the hedge must be highly probable.