Net investment hedge accounting

From ACT Wiki
Revision as of 18:56, 29 January 2022 by imported>Doug Williamson (Classify page.)
Jump to navigationJump to search

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