Financial instruments — General hedge accounting
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
A 'review draft' of the hedge accounting section of IFRS 9 Financial Instruments was published on 7 September 2012, dealing with general hedge accounting. The finalised requirements, which would represent a significant change to the current hedge accounting approach under IAS 39, are expected to be issued in the second or third quarters of 2013.
|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 ofpublished||Finalised requirements expected in the fourth quarter of 2012*|
* Originally forecast date, subsequently amended.