Which statement about hedge accounting is true?

Which statement about hedge accounting is true?

• A. Hedge accounting requires all hedges to be reported in profit or loss immediately
• B. Hedge accounting eliminates the need to designate hedges
• C. Hedge accounting can permit the effective portion of hedging gains to be recorded in OCI rather than in profit or loss
• D. Hedge accounting applies only to depreciation hedges

Answer: (C)