[CFM62370] CFM62370 – Foreign exchange: matching: bringing amounts back into account: priority order for matching
Cases where priority rules are needed
A company may have more than one investment in a foreign operation – where those investments take the form of shareholdings, long-term loans, or both. A company may have (for example) a portfolio of US dollar assets, which are hedged on a portfolio basis by a ‘pool’ of US dollar debt liabilities and currency contracts. The company may even have further portfolios of assets with different underlying currencies.