Posts Tagged ‘General HA’
IFRS 13 for Corporates: Stuck between the Bank and a Hard Place
Corporate treasurers have faced many a regulatory challenge before, and IFRS 13 is no exception. Deploying a compliant fair value methodology under this new standard has been causing many treasurers significant angst over the last few months. They are not helped by the plethora of mixed messages, confusing guidance and inconsistent treatment from various experts…
Read MoreTHE IASB HEARS THE CONCERN OF THE 90 PERCENT ON IFRS 9 FATAL FLAWS
Reval recently asked corporations that apply IFRS across the globe their opinion on the latest IFRS 9 Review Draft. In particular, Reval wanted to know how they felt about the controversial treatment of hypothetical derivatives embodied in Paragraph B6.5.5. This paragraph currently outlines how hypothetical derivatives, and by implication the exposures themselves, cannot include elements…
Read MoreIFRS 9 Hedge Accounting Jeopardizes Convergence Dream
In September this year, the International Accounting Standards Board (IASB) finally issued the Review Draft for Hedge Accounting, phase three of the replacement project for IAS 39 (under the banner of IFRS 9). Although this is not the final draft of the standard, the IASB do not expect any changes between now and the final…
Read MoreOCI Releases: Restatement Risk from the Finer Points of Hedge Accounting
Reval Solution Consultant Shane Randolph says “…when regulators re-focus their attention on hedge accounting within the next two to three years, we will see the next round of restatements focus on the finer points of hedge accounting. One of those areas involves releases from other comprehensive income (OCI).”
Read MoreWhy Some Airlines May be Heading for Restatement
Many airlines hedge their purchases of jet fuel through various means, but they should beware of using one method for assessment and another for measurement.
Read MoreIFRS 9 Hedge Accounting: Missed Deadlines Creates Uncertainty
The delay of IFRS 9 hedge accounting (phase III) is disappointing news for many; particularly the commodity and option hedgers who were hoping to take advantage of the more favourable provisions in the new standard as soon as possible.
Read MorePreparing for IFRS 9
Companies should undertake a review of their current risk management and hedge accounting policies to highlight how the proposed changes will impact these policies given the new IFRS 9 requirement. The proposed rules can operate on three core levels.
Read MoreInterest rate risk, Sweden, and FAS 157 (ASC 820)
Common concerns among Scandanavian countries include challenges of non-performance (i.e. credit) risk in valuing derivatives.
Read MoreAccounting for Cross Currency Interest Rate Swaps – A New Approach to Avoid P&L Volatility
Since the financial crisis, many organisations have experienced significant P&L volatility on their cross currency interest rate swaps through movements in currency basis. Recently, a new technique for applying hedge accounting to these instruments has emerged…
Read MoreHow the Global Financial Crisis Killed the LIBOR Benchmark
Given that the interbank market has already moved to OIS discounting, the next logical step will be for this trend to trickle down into the corporate sector as well.
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