what is a net investment hedge 
a net investment hedge is used to hedge a company s foreign currency exposure and reduce the potential reported earnings risk that may occur upon the future disposition of a net investment in a foreign operation 2the bottom linefasb s changes in the updated asc 815 made the use of hedge accounting easier for companies to adopt but that doesn t mean it s easy even with the changes hedge accounting can still be complex and some companies may not use it because it s perceived as more difficult than other accounting topics according to gautam goswami cpa national assurance partner at bdo 1