Dec 20, 2013
From the Financial Reporting View
KPMG ISG's First Impressions: IFRS 9 (2013) - Hedge Accounting and Transition provides a detailed analysis of the ISG's observations about the IASB's recent amendments to IFRS 9, Financial Instruments (2013). The new general hedge accounting model will more closely align hedge accounting under IFRS with risk management. While the new standard does not fundamentally change the types of hedging relationships that qualify for hedge accounting or the requirement to measure and recognize ineffectiveness, more hedging strategies that are used for risk management will qualify for hedge accounting.
The standard rescinds the January 1, 2015 effective date of IFRS 9. The IASB will determine a new effective date when it completes the classification and measurement and impairment phases of IFRS 9. Early application is allowed under certain circumstances.