Dynamic Risk Management – International Accounting Standards Board
At its meeting on April 27-28, 2021, the IASB met to hear a summary of feedback gathered between October 2020 and February 2021 from banks that use dynamic risk management to manage interest rate risk. The Board discussed feedback on topics that significantly affect the viability and operability of the accounting model for dynamic risk management, including: interest rate risk management strategies; target profile; designation of expected cash flows and impact on imperfect alignment; and recognition of fair value changes in other comprehensive income. The Board was not asked to make any decisions. The Board will discuss plans for redeliberating the significant topics at the next meeting.
Review the IASB Update and podcast on the Board's Web site.
