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Which one of the following statements is incorrect?

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Which one of the following statements is incorrect? Hedge accounting of an existing position no longer applies when:

A.

the trader acquires additional exposure in the hedged item.

B.

the hedging instrument is sold, terminated or exercised.

C.

the hedged item is sold or settled.

D.

a hedge fails the effectiveness test.

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TESTED 18 Aug 2025