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Which of the following statements are true concerning hedge accounting for foreign currency firm commitments? a....

Which of the following statements are true concerning hedge accounting for foreign currency firm commitments?

a.

A firm commitment is an executory contract not normally recognized in financial statements
b.

Hedge accounting requires explicit recognition on the balance sheet at fair value of both the derivative financial instrument and the firm commitment
c.

Changes in the spot exchange rate are used to determine the fair value of the firm commitment when a foreign currency option is the hedging instrument
d.

All of the above statements are true.
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