Proposed IAS 39 guidance addresses bank "macro-hedging"
23 Jun 2001
On 22 June 2001, the IAS 39 Implementation Guidance Committee published for comment proposed Batch 6 of IAS 39 implementation guidance.
Batch 6 includes 24 Q&A; and illustrative examples. Comment deadline is 24 August. One of the questions and related examples address the particularly thorny issue of applying hedge accounting when a bank or other financial institution manages its interest rate risk on an enterprise-wide basis. The guidance includes an example of a methodology that allows for the use of hedge accounting and takes advantage of existing bank risk management systems so as to avoid unnecessary changes to it and to avoid unnecessary bookkeeping and tracking.