When an item is deemed to hedge a net investment in a foreign subsidiary, any gain or loss on the hedging items is recorded in income.

Name: When an item is deemed to hedge a net investment in a foreign subsidiary, any gain or loss on the hedging items is recorded in income.
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Question

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Gains or losses on items that hedge a net investment in a foreign subsidiary are recognized in other comprehensive income (OCI) and accumulated in the foreign currency translation reserve, not immediately recorded in income.

When an Item Is Deemed to Hedge a Net Investment