Additional outreach on the scope exception for 'macro fair value hedge accounting'

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30 Jan, 2013

During discussions at its January meeting today, the IASB decided to postpone a decision on a question of the staff on whether to retain the drafting in the Review Draft of the hedge accounting section of IFRS 9 regarding what requirements apply if an entity uses the scope exception for ‘macro fair value hedge accounting’.

The staff argued that the review draft published in September 2012 is clear that an entity that uses the scope exception for ‘macro fair value hedge accounting’ applies all (applicable) hedge accounting requirements in IAS 39 and not only paragraphs 81A, 89A and AG114-AG132.

During the discussion it became clear, however that while some Board members believe that the standard is clear others believe that it should permit entities to extend current practice until the macro hedging project is finalised if the current practice constitutes some sort of macro hedging. The Board finally decided against a general grandfathering of current practice, however, some further limited outreach will be conducted.

The European Financial Reporting Advisory Group (EFRAG) conducted some field-testing of the review draft and has already started an additional consultation on existing macro hedge relationships under IAS 39.

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