This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Financial Instruments: Hedge Accounting

Date recorded:

This was an IASB-only session.


Overview of items

The staff presented the Bard an overview of issues to be addressed as part of the hedge accounting project. No decisions were made.

The Board agreed to pursue the general hedge accounting approach and subsequently to consider the issues related to portfolio hedges. The staff also clarified that some issues related to both general approach and portfolio approach need to be addressed early in the deliberations (for example, groups of items and net positions).

Some Board members expressed some concerns with the tentative decision of the Board to apply cash flow hedge mechanics to fair value hedges. The staff noted that this issue will need to be re-deliberated to consider concerns expressed by several constituents in the outreach about possible unintended consequences of such decision.

The staff also clarified that based on the outreach, constituents prefer a comprehensive overview of the hedge accounting rather than a 'quick fix'. On the other hand, the FASB will publish its ED on financial instruments including proposed hedge accounting guidance in May.

The Board will continue in deliberations of hedge accounting at its May meeting.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.