Net Investment Hedge (Simplified): EUR Loan vs EUR Subsidiary
This lesson is part of the course
In this lesson
You show how a EUR 15m loan offsets the translation differences on Strandvik Instruments's EUR 20m German subsidiary in OCI, and what goes to profit once the loan is bigger than the net assets.
Buy the course once for $9.99 to unlock every lesson and lab, the final exam and the certificate – lifetime access, no subscription.
Lessons in this course
- Why Hedge Accounting? Profit Volatility with and without It Locked
- Fair Value Hedge: Fixed-Rate Debt Swapped to Floating Locked
- Cash Flow Hedge: Forecast EUR Purchase, OCI Reserve & Reclassification Locked
- The Lower-of Test: Splitting the Effective and Ineffective Portion Locked
- Effectiveness Testing: Dollar-Offset 80–125% and Regression with SLOPE & RSQ Locked
- Hedge Ratio and Rebalancing: Proxy Hedging with SLOPE Locked
- Net Investment Hedge (Simplified): EUR Loan vs EUR Subsidiary Locked
- Hedge Disclosures and the OCI Reserve Roll-Forward (with Waterfall Chart) Locked