Abstract:

Many companies are now considering the International Financial Reporting Standard IFRS 9, the new and relevant accounting standard on financial instruments and hedge accounting. IFRS 9 addresses all the relevant aspects on the accounting for financial instruments, including classification and measurement, impairment of financial assets and general hedge accounting, followed by the macro hedge accounting model which will be important for risk management. This publication presents a number of important points and focuses on just one topic in IFRS 9: the hedge accounting. IFRS 9 aligns hedge accounting more closely with risk management, establishes a more principle-based approach to hedge accounting and addresses inconsistencies and weaknesses in the hedge accounting model in IAS 39.