Technical staff from the International Accounting Standards Board (IASB) have produced a series of eight webcasts to explain the Dynamic Risk Management (DRM) project based on the IASB’s tentative decisions to date.
The project’s aim is to get companies to reflect better in their financial statements how interest rate risk management affects the amount, timing and uncertainty of future cash flows.
This webcast introduces the unique features of the risk mitigation intention, which is a new element to determine the net risk available to be mitigated in the DRM model. It also explains how an entity would use benchmark derivatives to help measure the risk mitigation intention. View the slide deck here.
This webcast uses a simplified example to illustrate how the DRM model is expected to work in practice, and how different elements explained in the above webcasts link together. View the slide deck here.