IFRIC 16 Hedges of a Net Investment in a Foreign Operation

Last Updated on 22/02/2020 by 75385885

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

References

Background

1 Many reporting entities have investments in foreign operations (as defined in IAS 21 paragraph 8). Such foreign operations may be subsidiaries, associates, joint ventures or branches. IAS 21 requires an entity to determine the functional currency of each of its foreign operations as the currency of the primary economic environment of that operation. When translating the results and financial position of a foreign operation into a presentation currency, the entity is required to recognise foreign exchange Read more