IASB webcasts on the dynamic risk management

  • IASB webcast Image

03 Apr 2023

The IASB technical staff has released two new webcast on the Dynamic Risk Management (DRM) project. The webcast focus on recent developments and tentative decisions made by the IASB in relation to the project.

In the first webcast, the staff explains the recent tentative decisions made regarding items eligible for inclusion in the current net open risk position (CNOP). Financial assets measured at fair value through other comprehensive income may be included in the CNOP, while a company’s own equity and financial assets measured at fair value through profit or loss cannot be designated in the CNOP.

In the second webcast, the staff explains the tentative decisions made in the IASB’s redeliberation on the performance assessment, which will no longer require a retrospective test against the target profile but instead a capacity assessment.

The aim of the DRM project is to encourage companies to reflect better in their financial statements how interest rate risk management affects the amount, timing and uncertainty of future cash flows. The project is an attempt to bring risk management and accounting closer together by increasing transparency in the financial statements about the interest rate management activities undertaken by companies.

For more in­for­ma­tion, see the press release on the IFRS Foun­da­tion's website.

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.