Under IFRS, Which of the Following Statements Is False Regarding

Multiple Choice

Under IFRS, which of the following statements is false regarding hedging?

A) Hedge accounting refers to a set of accounting rules that allow a company to smooth the impact of foreign currency fluctuations on income.
B) The gain or loss on a hedging instrument under a cash-flow hedge is first reported as other comprehensive income and then reclassified to income when the hedged item affects income.
C) The gain or loss on a hedging instrument under a cash-flow hedge is first reported as income.
D) Without the use of hedge accounting, an increased volatility on income would be realized resulting from a company's exposure to foreign currency risk.