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IFRS – financial instruments: Hedge accounting 

The IASB has split the hedge accounting phase into two parts: general hedging and macro hedging. It issued a review draft of a general hedging standard in September 2012 and issued a final general hedging standard in November 2013 as part of IFRS 9 Financial Instruments (2013).


The IASB is also working towards issuing a discussion paper on macro hedging in the first quarter of 2014.

 

In addition, in 2013 the IASB completed an accelerated project to provide relief from the discontinuation of hedge accounting when a hedging derivative is novated to a central counterparty because of changes to laws or regulations. It issued an exposure draft in February 2013 of proposed amendments to IAS 39 and IFRS 9 and issued final amendments to IAS 39 in June 2013. The IASB plans to include similar guidance for IFRS 9 as part of the general hedging standard.

Timeline:


Hedge accounting

 

* IFRS 9 (2013) removed the previous 1 January 2015 mandatory effective date of IFRS 9. At the IASB’s November 2013 meeting, the Board decided that the mandatory effective date of IFRS 9 would not be before 1 January 2017, but that the final effective date will be determined when the classification and measurement and impairment chapters of IFRS 9 are finalized.

 IFRS insights

Chris Spall

Chris Spall

Global IFRS Financial Instruments Leader

+44 20 7694 8445

Terry Harding

Terry Harding

Global IFRS Financial Instruments Deputy Leader

+44 20 7694 8105

Enrique Tejerina

Enrique Tejerina

Global IFRS Financial Instruments Deputy Leader

+1 212 909 5530