At its meeting on September 19 and 20, 2018, the International Accounting Standards Board (the Board) discussed the information that should be provided in situations of imperfect alignment. Board members unanimously agreed that, for items designated in the DRM model, measuring imperfect alignment provides information about the extent to which an entity has achieved its risk management strategy and therefore quantifies the resulting potential impact on the entity’s future economic resources.

Also, the Board tentatively decided that when a change in risk management strategy requires a change in the entity’s target profile, the accumulated balance recognized in other comprehensive income should be reclassified to profit or loss over the life of the target profile as defined prior to the change in risk management strategy.

Review the IASB Update and podcast on the Board's Web site.