Which of the following is not a qualifying criterion for hedge accounting?

In the context of hedge accounting, option C describes a characteristic that is not a mandatory qualifying criterion. Hedge accounting focuses on aligning the recognition of gains and losses on financial instruments and the items being hedged, ultimately aiming for a more accurate representation of an entity's risk management activities.

The key qualifying criteria for hedge accounting typically involve establishing an economic relationship between the hedged item and the hedging instrument, ensuring that the hedge ratio reflects this relationship effectively, and managing the risks involved without letting credit risk outweigh the changes in the fair value of the hedged item.

While identifiable cash flows are important for recognizing the nature and risks associated with the hedged item, they do not serve as a strict criterion to qualify for hedge accounting. This allows for a broader range of hedging relationships that can focus more primarily on the effectiveness of the hedge rather than exclusively on cash flows. Thus, the correct answer reflects an understanding that the presence of identifiable cash flows from the item is not a fundamental requirement for hedge accounting eligibility.