Under IFRS, Which of the Following Statements Is True

Multiple Choice

Under IFRS, which of the following statements is true?

A) The hedge of a forecasted transaction is accounted for using a fair-value hedge.
B) The hedge of a firm commitment is accounted for using a cash-flow hedge.
C) 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.
D) The gain or loss on a hedging instrument under a fair-value hedge is first reported as other comprehensive income and then reclassified to income when the hedged item affects income.