Highly effective to qualify for special financial treatment

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All hedging relationships must be “highly effective” to qualify for special financial treatment. What is meant by the term highly effective and why is its measurement important for financial managers?

Reference no: EM13847183

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Highly effective to qualify for special financial treatment : All hedging relationships must be “highly effective” to qualify for special financial treatment. What is meant by the term highly effective and why is its measurement important for financial managers?
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