Global Standards for the world economy

Wednesday 19 December 2018

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IFRS 9 - Determining hedge effectiveness for net investment hedges


 Issue rejected—Agenda decision

Determining hedge effectiveness for net investment hedges

The Interpretations Committee received a request to clarify how an entity should determine hedge effectiveness when accounting for net investment hedges in accordance with IFRS 9 Financial Instruments. Specifically, the submitter asked whether, when accounting for net investment hedges, an entity should apply the ‘lower of’ test required for cash flow hedges in determining the effective portion of the gains or losses arising from the hedging instrument.

Project stages

Board deliberations

Expected completion date of phase: March 2016 - Completed