BP » Topics » Hedges of the net investment in a foreign entity

This excerpt taken from the BP 6-K filed Mar 13, 2006.
Hedges of the net investment in a foreign entity For hedges of the net investment in a foreign entity, the effective portion of the gain or loss on the hedging instrument is recognized directly in equity, while the ineffective portion is recognized in profit or loss. Amounts taken to equity are transferred to the income statement when the foreign entity is sold.

 

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