• Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
  • Type: Regulatory update
  • Date: 14/12/2010

IFRS In the Headlines

IFRS In the Headlines
In the Headlines (formerly IFRS Briefing Sheets) provide news and factual information on developments concerning International Financial Reporting Standards (IFRS).

IFRS Briefing Sheet 225: ED/2010/13 Hedge Accounting 

This IFRS Briefing Sheet summarises Exposure Draft ED/2010/13 Hedge Accounting (the ED).

Key points

  • hedge accounting would be integrated with risk management activities
  • eligible hedged items would include certain risk components of non-financial items and certain groups of items
  • quantitative threshold and retrospective assessment for hedge effectiveness testing would be eliminated
  • fair value hedge mechanics would be adjusted to align closer with current cash flow hedge mechanics
  • hedges would be rebalanced instead of restarted; however, voluntarily discontinuing would be prohibited
  • time value component of purchased options would be accounted for in other comprehensive income.
IFRS Briefing Sheets - International financial reporting updates