A net investment hedge is a risk management strategy used to mitigate foreign exchange exposure related to an entity’s net investment in a foreign operation. This hedge involves using financial instruments, such as foreign currency borrowings or derivatives, to offset currency fluctuations impacting the value of the net investment. The effectiveness of a net investment hedge is assessed under specific accounting standards to ensure proper financial reporting.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
