IASB issues hedge accounting model 

September 7: The IASB today issued a review draft of its hedge accounting model to provide a principles-based standard that aligns hedge accounting under International Financial Reporting Standards (IFRS) more closely with risk management.

The IASB intends for the review draft to address significant criticisms that current hedge accounting guidance is complex, inconsistent, and has other significant weaknesses.


The FASB also has proposed changes to its hedge accounting model, and at this point, it is unclear how the concepts in the IASB’s review draft would affect the FASB’s conclusions on hedge accounting. The FASB’s proposals differ significantly from the IASB’s and are intended to resolve specific, major practice issues.


Although the FASB requested comments on the IASB’s hedge accounting model and discussed them last year, the FASB has not yet redeliberated its own hedge accounting proposals and, when it does, it is unclear how the FASB will include the IASB in the redeliberations.


Read a September 2012 report [PDF 126 KB] prepared by KPMG LLP: Defining Issues: IASB Issues Hedge Accounting Model




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