Net investment hedge accounting

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Financial reporting.

Net investment hedge accounting, which 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