The IASB discussed the eligibility of groups of hedged items for designation in hedging relationships, including net positions and contractually-specified risk components. The discussion was in the context of the general hedge accounting model that the Board is developing.
Groups of hedged items including net positions
As a first step in considering this issue, the Board tentatively decided that no group-specific eligibility criteria should apply to the examples presented. The examples included some groups of hedged items (including some net positions). The Board discussed the examples in the context of an earlier tentative decision to propose using the cash flow hedge accounting mechanism for fair value hedges. In that context, the Board tentatively decided to present amounts transferred as hedge accounting adjustments between profit or loss and other comprehensive income in a separate income statement line for the net position hedge examples discussed. As the Board continues to discuss further examples of groups of hedged items, these tentative decisions will be reviewed.
Contractually specified risk components
The Board tentatively decided that a contractually-specified risk component should be an eligible hedged item, irrespective of whether it is the component of a financial or a non-financial item.