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Question 39 - C_S4FTR_2023 discussion

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You are preparing a handbook for testers on the SAP Hedge Management application for foreign exchange (FX).When must you take a snapshot?

A.

After the decision on a hedging instrument is final Before you process the hedging instrument

Answers
A.

After the decision on a hedging instrument is final Before you process the hedging instrument

B.

After you determine the hedging requirements Before the decision on a hedging instrument is final

Answers
B.

After you determine the hedging requirements Before the decision on a hedging instrument is final

C.

After you create the hedging area Before you release the raw exposure

Answers
C.

After you create the hedging area Before you release the raw exposure

D.

After you capture raw exposure data Before you conclude the hedging contract

Answers
D.

After you capture raw exposure data Before you conclude the hedging contract

Suggested answer: B

Explanation:

You must take a snapshot after you determine the hedging requirements and before the decision on a hedging instrument is final when using SAP Hedge Management application for foreign exchange (FX). A snapshot is a copy of the relevant data for hedge accounting, such as the hedged item, the hedging instrument, and the market data. It is used to perform the effectiveness test and to document the hedge relationship.

asked 31/10/2024
Simon John Mather
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