• Service: Advisory, Risk Consulting, Actuarial and Financial Risk Management
  • Industry: Financial Services
  • Type: Event
  • Date: 3/2/2011

KPMG Executive Breakfast Briefing - Update on Exposure Draft of Hedge Accounting (Hong Kong) 

Date: Wednesday, 2 March 2011
Time: 8:00 a.m. - 8:30 a.m. (Registration)
8:30 a.m. - 10:15 a.m. (Presentation)
Venue: Harcourt Room, Lower Lobby
Conrad Hong Kong
Pacific Place, 88 Queensway
Hong Kong
Martin Wardle
Head of Financial Services Hong Kong
KPMG China
Ana Cortez
Partner, Professional Practice Department
KPMG China
  Dr Christopher Marshall
Partner, Financial Risk Management and Compliance Services
KPMG China
Dress Code: Business Attire
Fee: There is no fee for attending this briefing however early registration is recommended as the number of seats is limited.

The IASB published ED/2010/13 Hedge Accounting (the ED) in December 2010. This is the first instalment of the final phase to replace the existing standard on financial instruments, IAS 39 Financial Instruments: Recognition and measurement. The ED proposes significant changes to the current general hedge accounting requirements. The proposals contained in the second installment expected during the second quarter of 2011, are intended to address portfolio or macro hedging.


In response to significant criticisms of the complexity and burden of hedge accounting, the IASB issued this ED with the main objective to address the artificial mismatch between risk management and hedge accounting strategies under the current requirements. The proposals alleviate some of the more operationally onerous requirements, such as the quantitative threshold and retrospective assessment for hedge effectiveness testing. It will also allow entities to rebalance and continue certain existing hedging relationships which have fallen out of alignment instead of having to restart the hedge in a new relationship.


The briefing will focus on the following areas:

• An overview of the new general hedge accounting requirements

• A brief assessment of the impact from a risk management perspective