The May 2013, Issue 12 of KPMG ISG's IFRS Newsletter: Financial Instruments - The Future of IFRS Financial Instruments Accounting summarizes the IASB's discussions and tentative decisions at its May 2013 meeting about its project on financial instruments (IAS 39 replacement). The IASB tentatively decided that novation would not result in discontinuation of a hedging relationship, provided that a central counterparty is involved either directly or indirectly and the novation takes place in response to regulatory changes. The IASB also discussed:
- The forthcoming discussion paper about macro hedge accounting, which will consider multiple presentations in the statement of profit or loss and the statement of financial position for revaluation adjustments.
- A summary of comment letters about the classification and measurement Exposure Draft.