NEW YORK-The International Financial Reporting Interpretations Committee (IFRIC) released on July 19, 2007 a draft Interpretation for public comment, IFRIC D22 "Hedges of a Net Investment in a Foreign Operation." .The proposal is open for public comment until 19 October 2007.
IFRIC D22 aims at clarifying two issues that have arisen on two accounting standards—IAS 21 The Effects of Changes in Foreign Exchange Rates and IAS 39 Financial Instruments: Recognition and Measurement —about the accounting for hedging foreign currency risk within a company and its foreign operations.
The IFRIC proposal clarifies what qualifies as a risk in the hedge of a net investment in a foreign operation and where within a group the instrument that offsets that risk may be held.
IFRIC D22 Hedges of a Net Investment in a Foreign Operation is available on TAGI website and can be accessed by clicking on the following link.
IFRIC’s principal role is to consider, on a timely basis within the context of International Financial Reporting Standards and the International Accounting Standards Board (IASB) Framework, accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus on the appropriate accounting treatment.
For more information please visit the following website: www.iasb.org