• Service: Audit, IFRS
  • Type: Business and industry issue
  • Date: 5/31/2013

Relief planned for derivative novations 

Responding to constituent feedback on its proposals for continuing hedge accounting after a derivative novation, the IASB decided in its May meeting to extend its proposed relief to indirect clearing arrangements and certain voluntary novations.


Following the Board’s decision, voluntary novations in response to regulatory changes would not result in a discontinuation of hedge accounting, provided that a central counterparty is involved either directly or indirectly. The finalised amendments are still expected by the end of June.


The Board also discussed macro hedging – focusing on the scope and presentation of the proposed revaluation approach – and the feedback received on the proposed limited amendments to the classification and measurement requirements of IFRS 9 Financial Instruments. No decisions were made on these topics.


Read our IFRS Newsletter: Financial Instruments to find out what these issues could mean for your business.

IFRS Newsletter: Financial Instruments - issue 12, May 2013

Feature image
Highlights of the IASB's May 2013 discussions, including derivative novations, macro hedge accounting, and classification and measurement.

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