copertura della svalutazione delle parteciapzioni

English translation: fair value or cash flow hedge on equity investments

22:16 Nov 22, 2006
Italian to English translations [PRO]
Bus/Financial - Business/Commerce (general)
Italian term or phrase: copertura della svalutazione delle parteciapzioni
copertura della svalutazione delle artecipazioni effettuata da yyyyyyyyyy
financial statement entry

thanks
Giovanna
giovie72
United States
Local time: 18:39
English translation:fair value or cash flow hedge on equity investments
Explanation:
If the company applies IAS, it is probably one of these.

Participazioni could be assets held for trading (HFT) purposes or available for sale (AFS) or long-term, strategic investments.

If they are trading or portfolio assets, **impairment is not applicable** unless there is a permanent diminution in value. Rather they are valued at "fair value" (IAS 39 - Financial Instruments).

If they are investments in consolidated subsidiaries, fair value hedging would not apply. Possibly cash flow hedge of dividends from foreign subsidiaries would qualify.

More context would help understand which one it is.
Selected response from:

DCypher (X)
Local time: 00:39
Grading comment
Thank you very much Paul, great help
Giovanna
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +1fair value or cash flow hedge on equity investments
DCypher (X)
4 +1hedging for impairment of equity investments
James (Jim) Davis
4covering/making up for the depreciation of shares
Cristina Chaplin


  

Answers


2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
covering/making up for the depreciation of shares


Explanation:
Depreciation
A noncash charge that represents a reduction in the value of assets due to wear, age, or obsolescence. Hard assets such as factories and machinery depreciate in value over time and must eventually be replaced. Accountants write-off these depreciation costs over the estimated useful life of the asset. Because of the reductive effects of depreciation on earnings, some financial analysts prefer to look at cash flow, which backs out depreciation costs from net income

http://www.comerica.com/vgn-ext-templating/v/index.jsp?vgnex...

Cristina Chaplin
United Kingdom
Local time: 23:39
Specializes in field
Native speaker of: Romanian
PRO pts in category: 27
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6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
hedging for impairment of equity investments


Explanation:
copertura is often a hedge, but here is seems complicated by hedging performed by XXXX against impairment (depreciation, value loss) of equity investments. You really need to read the full context. Where on the balance sheet it is precisely and read the notes to the accounts, which should give some enlightenment.

James (Jim) Davis
Seychelles
Local time: 02:39
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 1880

Peer comments on this answer (and responses from the answerer)
agree  DCypher (X): Possible. But only if we are talking about *permanent* dimunition in value of the investment.
3 hrs
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9 hrs   confidence: Answerer confidence 5/5 peer agreement (net): +1
fair value or cash flow hedge on equity investments


Explanation:
If the company applies IAS, it is probably one of these.

Participazioni could be assets held for trading (HFT) purposes or available for sale (AFS) or long-term, strategic investments.

If they are trading or portfolio assets, **impairment is not applicable** unless there is a permanent diminution in value. Rather they are valued at "fair value" (IAS 39 - Financial Instruments).

If they are investments in consolidated subsidiaries, fair value hedging would not apply. Possibly cash flow hedge of dividends from foreign subsidiaries would qualify.

More context would help understand which one it is.

DCypher (X)
Local time: 00:39
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 307
Grading comment
Thank you very much Paul, great help
Giovanna

Peer comments on this answer (and responses from the answerer)
agree  James (Jim) Davis: Paul partecipazioni are often actually defined as **not for trading** , as consolidated subsidiaries or associates
36 mins
  -> Indeed. And more context would help clarify this.
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