IAS Plus newsletter — IFRIC issues Interpretation on net investment hedging
Published on:
04 Jul 2008
On 3 July 2008, the International Financial Reporting Interpretations Committee (IFRIC) issued IFRIC 16 Hedges of a Net Investment in a Foreign Operation.
The Interpretation provides guidance on net investment hedging, including:
- which foreign currency risks qualify for hedge accounting, and what amount can be designated
- where within the group the hedging instrument can be held; and
- what amount should be reclassified to profit or loss when the hedged foreign operation is disposed of.