Developed market and Net investment hedge accounting: Difference between pages

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''Market classification.''
''Financial reporting''.


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


A developed market is one which has reached the most advanced levels of development in its economy and capital markets.


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


Markets (in order of economic development) are often classified as:
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.


::Developed;
::Emerging;
== See also ==
::Frontier;
* [[Cash flow hedge accounting]]
::Least Developing.
* [[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]]


 
[[Category:Accounting,_tax_and_regulation]]
Examples of emerging markets include Argentina, Turkey, Brazil, China and Malaysia.
 
 
==See also==
*[[Capital market]]
*[[Developing country]]
*[[Economy]]
*[[Emerging currency]]
*[[Emerging market]]
*[[EMTA]]
* [[Frontier market]]
*[[International Bank for Reconstruction and Development]]
*[[Least developing market]]
* [[Market]]
*[[United Nations Conference on Trade and Development]]
 
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Latest revision as of 15:17, 9 July 2022

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

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