It Has Been Argued by Some Firms That IASB Fair

Multiple Choice

It has been argued by some firms that IASB fair value accounting fundamentally changes the focus of risk management.Which of these is a way in which the focus may change?

A) Firms may increase their hedging activities because they are worried about the impact on accounting profits
B) Firms may decrease their hedging activities because they are worried about the impact on accounting profits
C) Firms may increase their hedging for pension liabilities as these now must show up as a liability on the balance sheet
D) B and C