Financial instruments – hedge accounting
The IFRIC received submissions asking whether various risks associated with specific portions of a cash flow or fair value exposure might qualify for hedge accounting under IAS 39: for example, could inflation risk qualify as a hedged portion of an interest-bearing asset or liability.
In July 2006, the IFRIC asked for the Board’s views on the principles to be applied in identifying a portion of a hedged item’s cash flows or fair value that is eligible for hedge accounting.
The Board acknowledged that further guidance on what qualifies as a hedged portion under IAS 39 is needed. However, it made no decision on what should be included in that guidance or whether the guidance should be an amendment to IAS 39 or an IFRIC Interpretation.
The Board will consider both of these after further development by the staff.