D is corrent. For an unrecognized firm commitment to qualify as a hedged item it must
| 1. |
Be binding on both parties. |
| 2. |
Be specific with respect to all significant items. |
| 3. |
Contain a nonperformance clause that makes performance probable. |
A is incorrect. For an unrecognized firm commitment to qualify as a hedged item it must
| 1. |
Be binding on both parties. |
| 2. |
Be specific with respect to all significant items. |
| 3. |
Contain a nonperformance clause that makes performance probable. |
B is incorrect. For an unrecognized firm commitment to qualify as a hedged item it must
| 1. |
Be binding on both parties. |
| 2. |
Be specific with respect to all significant items. |
| 3. |
Contain a nonperformance clause that makes performance probable. |
C is incorrect. For an unrecognized firm commitment to qualify as a hedged item it must
| 1. |
Be binding on both parties. |
| 2. |
Be specific with respect to all significant items. |
| 3. |
Contain a nonperformance clause that makes performance probable. |
