The International Accounting Standards Board (IASB) is exploring whether it can develop an accounting model that will enable investors to understand a company’s dynamic risk management and to evaluate the effectiveness of that risk management.
The IASB gathered stakeholders’ views on the core model and is considering the challenges identified during meetings with preparers before deciding on the project direction.
The IASB met on 19 November 2021 to discuss refinements to the Dynamic Risk Management model (DRM model) to address challenges identified during meetings with preparers.
Refinements to the DRM—Risk Limits (Agenda Paper 4A)
To enable an entity to better reflect its risk management strategy in the DRM model, the IASB tentatively decided:
All 12 IASB members agreed with these decisions.
Designation of a portion of prepayable assets in the DRM model (Agenda Paper 4B)
The IASB tentatively decided not to make additional refinements in the DRM model to allow an entity to designate a portion of a portfolio of prepayable assets.
All 12 IASB members agreed with this decision.