Under IFRS, Which of the Following Statements About Hedging a Foreign

Multiple Choice

Under IFRS, which of the following statements about hedging a foreign currency risk of an accepted purchase order is TRUE?

A) It can be accounted for using either a fair-value hedge or a cash-flow hedge.
B) It is not eligible for hedge accounting until it becomes an accounts payable.
C) It must be accounted for using a fair-value hedge.
D) It must be accounted for using a cash-flow hedge.