United States

New on the Horizon: Accounting for Dynamic Risk Management Activities

Jul 28, 2014
From the Financial Reporting View and the IFRS Institute

KPMG’s ISG recently published New on the Horizon: Accounting for Dynamic Risk Management Activities, which analyzes the IASB Discussion Paper, Accounting for Dynamic Risk Management: a Portfolio Revaluation Approach to Macro Hedging. The Discussion Paper discusses one possible approach to macro hedge accounting that would address the difficulty of faithfully representing in a company’s financial statements its risk management activities for an open portfolio (i.e., a portfolio that changes over time). The IASB believes that addressing that difficulty involves resolving fundamental accounting questions rather than modifying existing hedge accounting models. The comment period ends October 17.

Read KPMG ISG’s New on the Horizon: Accounting for Dynamic Risk Management Activities