Net investment hedge accounting

Financial reporting.

Net investment hedge accounting applies to hedges of foreign currency risk on net investments in foreign operations.

It is accounted for in a similar way to cash flow hedge accounting.

It is achieved by deferring in other comprehensive income (OCI), changes in value of the hedging instrument, with amounts later removed or reclassified and ultimately recognised in profit or loss at the same time as the hedged net investment.

See also

• Cash flow hedge accounting
• Fair value hedge accounting
• Financial reporting
• Foreign exchange risk
• Hedge accounting
• Hedging
• IFRS 9
• IFRS 9 hedge accounting reforms: a closer reflection of risk management?
• Investment
• Other comprehensive income (OCI)
• Statement of profit or loss
• Statement of profit or loss and other comprehensive income