Discussion Question 1
Gains and losses on foreign currency borrowings can be used to hedge the net investment in a foreign subsidiary. How are these reported in the consolidated financial statements? In addition, what other techniques may a company use to hedge net investments?
Discussion Question 2
Describe the impact inflation has on financial accounting. Should financial statements be adjusted for inflation? In what ways do International Accounting standards (IFRS) address the issue of accounting for changing prices (inflation)?