IASB January 2010

Financial crisis

The objective of hedge accounting

The Board discussed two possible objectives for hedge accounting. The Board discussed the possible objectives in the context of whether risk components could qualify for hedge accounting under any hedge accounting approach that the Board might propose. The Board noted that a hedge accounting objective should permit or require hedge accounting for risk components if a risk component is separately identifiable and measurable for the purpose of determining hedge ineffectiveness. The Board also noted that a hedge accounting objective and the treatment of risk components should apply to both financial and non-financial hedged items.

No decisions were made.