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Thursday 27 November 2014

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2014 Investor Perspectives

2014 Investor Perspectives


 New Hedge Accounting Model Will Improve Investor Understanding of Risk Management


30 June 2014

 

Patricia McConnell, a member of the IASB, provides her perspectives on the new hedge accounting requirements.

In November 2013, the IASB added a new Hedge Accounting chapter to its financial instruments Standard (IFRS 9 Financial Instruments). It is a major overhaul of hedge accounting. The new model more closely aligns accounting for hedging activities with a company’s risk management strategies, and provides improved information about those strategies.

Investors in non-financial companies are likely to see the most improvement in financial reporting for risk management activities. Banks and similar financial institutions will be more affected by the outcome of the IASB’s dynamic risk management (macro-hedging) project which is currently underway.

Read the full article: New Hedge Accounting Model Will Improve Investor Understanding of Risk Management