The IASB developed and refined ‘core areas’ that are central to an accounting model (core model) that might enable investors to understand the effect of a company’s dynamic risk management. The model’s development reflects information gathered at meeting with banks that use dynamic risk management for repricing risk due to changes in interest rate.
The project was added to the standard-setting programme in May 2022, and the IASB will discuss detailed project proposals at a future IASB meeting.
The IASB met on 24 May 2023 to continue its discussions on the Dynamic Risk Management (DRM) model, with a set of illustrative examples intended to demonstrate the designation and application of the DRM model.
The IASB was not asked to make any decisions.