The IASB has split the hedge accounting phase into two parts: general hedging and macro hedging. It issued a final general hedging standard in November 2013 as part of IFRS 9 (2013), which was then incorporated into IFRS 9 (2014) which is effective for annual periods beginning on or after 1 January 2018 (subject to endorsement for use in the EU).
The new general hedging standard provides a more principles-based approach that aligns hedge accounting more closely with risk management. However, the types of hedging relationships – fair value, cash flow and foreign operation net investment – remain unchanged from IAS 39.
The IASB is continuing with work to develop a new macro hedging model to better reflect entities’ dynamic risk management activities while reducing the operational complexities of the current accounting requirements.