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Options
- A
Value of derivative in balance sheet is “book value”
- B
Value of derivative in balance sheet is “zero value”
-
Fair value will be taken to Profit/Loss Account except for hedging transactions
Correct answer
- D
All derivative transactions must be brought into balance sheet except those settled after balance sheet date
Why this is the answer
Fair value changes are reflected in the P&L account, unless the transaction qualifies for hedge accounting treatment.
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