IASB seeks stakeholder feedback on hedge accounting requirements in IFRS 9 and IFRS 7

The International Accounting Standards Board (IASB) has today published a Request for Information to review its hedge accounting requirements. The review will assess whether the requirements are working as intended and delivering the expected benefits for investors and other users of financial statements. It will also consider whether the costs of applying the requirements are broadly in line with the IASB’s expectations.

Hedge accounting helps to reflect in financial statements the effects of a company’s risk management activities that use financial instruments to manage particular risk exposures.

This review sits across two IFRS Accounting Standards:

• the hedge accounting requirements in IFRS 9 Financial Instruments; and
• the hedge accounting disclosure requirements in IFRS 7 Financial Instruments: Disclosures.

The IASB is seeking feedback from stakeholders including investors, companies, auditors, regulators and standard-setters.

IASB Acting Chair Linda Mezon-Hutter said:

Hedge accounting is intended to give a clearer picture of the effects of a company’s risk management activities in its financial statements. We want to know whether our requirements are actually supporting that aim in practice.

This review will complete the IASB’s Post-implementation Review of IFRS 9, following the earlier reviews of classification and measurement as well as impairment requirements.

Post-implementation reviews are an important part of the IASB’s due process. The IASB conducts a review a few years after a Standard has been implemented to assess its real-world effects.

Access the consultation

• Request for Information Post-implementation Review of IFRS 9 and IFRS 7—Hedge Accounting Requirements
• Submit a comment letter. The Request for Information is open for comment until 26 January 2027.