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Financial instruments — General hedge accounting

Background

This project forms part of the IASB's comprehensive project on financial instruments. The existing hedge accounting requirements in IAS 39 Financial Instruments: Recognition and Measurement are often considered by users and preparers of financial statements to be complex and not reflective of an entity’s risk management activities, nor to what extent those activities are successful in meeting the entity's risk management objectives. Many also find the requirements in IAS 39 excessively rule-based, resulting in arbitrary outcomes.

The project involves a comprehensive review of hedge accounting requirements, to establish a more objective-based approach to hedge accounting and align it with an entity's risk management processes.

This project is split into two phases: general hedge accounting (discussed on this page) and macro hedge accounting (see our separate project page).

 

Current status of the project

IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) was issued on 19 November 2013. 

 

Project milestones

DateDevelopmentComments
9 December 2010 Exposure Draft ED/2010/13 Hedge Accounting published Comment deadline 9 March 2011
7 September 2012 'Review draft' of the hedge accounting section of IFRS 9 published
19 November 2013 IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39) issued The amendment removed the mandatory effective date for IFRS 9 which will be set once the standard is complete with a new impairment model and finalisation of any limited amendments to classification and measurement

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