Deloitte comment letter on tentative agenda decision on IFRS 9 — Hedge accounting with load following swaps

Published on: 08 May, 2018

We have commented on the IFRS Interpretations Committee's publication in the March 2018 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the application of the ‘highly probable’ criterion for cash flow hedge accounting applies to a hedge relationship in which the notional amount of the hedging instrument (a ‘load following swap’) varies depending on the outcome of the hedged transaction.

We agree with the IFRS Interpretations Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision; however, we are concerned that a statement only that “the financial instrument described in the request is not common” provides no guidance to preparers of financial statements and could give rise to divergence in practice.

Download the full comment letter below.


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