CERTYNEX IFRS ACADEMY

For the hedge of a net investment in a foreign subsidiary, Vexil writes in its accounting policies note: "The hedge accounting requirements are set by IAS 21." What is the error?

A hedge of a net investment does not exist and so cannot be designated.

IAS 21 reserves hedge accounting for cash flow hedges.

Hedge accounting is dealt with by IFRS 9, not by IAS 21.

Hedge accounting falls under IAS 21 for subsidiaries but under IFRS 9 for branches.