Dynamic Risk Management – International Accounting Standards Board
At its meeting on February 20-23, 2023, the IASB continued its discussions on the development of the Dynamic Risk Management (DRM) model. The IASB discussed: (i) whether financial assets measured at fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVPL) are eligible for inclusion in the determination of an entity’s current net open risk position; and (ii) whether it is necessary to refine the requirements for the assessment of the performance of the DRM model, including how to reflect in financial statements the effects of any unexpected changes in the model. Following a discussion, the IASB made tentative decisions with respect to both (i) and (ii). The IASB will continue its discussions on the topics identified in the project plan at a future meeting.
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