Designation is formally documented d. Forecasted transaction is specifically identified e. Forecasted transaction is probable f. Forecasted transaction is part of an established business g. Derivative is expected to have cash flows that will offset the changes in cash flows of the hedged transaction.
Designation is prospective c.
Designation is formally documented d. Both the hedging item and the hedged item have reasonably determinable fair values e. Changes in fair value of the derivative are expected to offset the changes in fair value of the hedged asset or liability. 5.A firm commitment is a contract that obligates both parties to make an exchange and specifies the price and quantity to be exchanged. A firm commitment is an asset and a liability of each party, but that asset and liability generally are not recognized in current practice.