It is the first book that addresses the definition of portions, reliable measurability and separate identifiability in IAS 39 and shows its coherence to calibration, equilibrium and absence of arbitrage conditions in financial modeling.
Considering hedge accounting as a valuation model, the link to existing risk management concepts is easy to follow since the methods applied in risk management measuring the performance of hedging relationships can be utilized to contemplate the application of hedge accounting.
The merit of the book lies in the point of view and the fundamental analytics leading to a general and principle based approach to hedge accounting. This is of prevailing relevance as the current discussions on the new IFRS 9 standard shows.
This analysis can be used to derive a general framework for hedge accounting models, which can be applied to hedges of FX risk, credit risk etc.
