EFRAG draft comment letter on amendments to hedge accounting
11 Mar 2013
The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2013/2 'Novation of Derivatives and Continuation of Hedge Accounting (Proposed amendments to IAS 39 and IFRS 9)' which was published on 28 February 2013.
The EFRAG supports the IASB's proposed amendments to IAS 39 and IFRS 9. However, the EFRAG states that:
The IASB should clarify that novations that take place to meet the requirements of (substantially) enacted laws or regulations – but that are voluntary only in the sense that they take place before the legal novation deadline – would also fall within the scope of the proposed amendment;
Early application should be permitted so that entities can apply the requirements to novations that take place prior to the finalisation of these amendments.
Comments on the letter are invited by 25 March 2013.
Click for:
- EFRAG press release with link to the draft comment letter (link to EFRAG website).
- Our previous story on the Exposure Draft ED/2013/2 Novation of Derivatives and Continuation of Hedge Accounting (Proposed amendments to IAS 39 and IFRS 9).
- Deloitte's IFRS in Focus newsletter on the proposals on novation of derivatives.
