Posts Tagged ‘IAS 39’

IFRS 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 More

Preparing 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 More

Importers Beware – IFRS 9 Could Result in Lost Margin

One of the proposed changes from IAS 39 in the new standard IFRS 9 is the removal of the ability to make ‘basis adjustments’ to non-financial hedged items. This could be a major issue for many importers who hedge their currency risk. The whole process of capturing gross margin in the ERP/Stock Management system may need to change or importers may risk losing margin on sales.

Read More

When Opposites Distract – FASB and IASB

When the FASB and the IASB started talking about the convergence of accounting standards back in 2006, the road map was pretty optimistic. Now the path to convergence is clearly widened further. No doubt its exposure draft issuance will coincide with the holiday period with comments due by September, so don’t forgot your laptop when your pack your suitcase.

Read More

Hypothetical Derivatives and Currency Basis

Since FAS 133 was introduced nearly a decade ago and IAS 39 was introduced over five years ago, we continue to see differing interpretations of these standards being applied in the marketplace. A good example of this is the application of currency basis on Cross Currency Interest Rate Swaps (“CCIRS”) for effectiveness testing.

Read More

On the Convergence Road Again: Will IAS 39 Wait for FAS 133?

The IASB was proceeding at an aggressive pace to overhaul IAS 39 and had announced its first two phases of the simplification project addressing classification and measurement and impairment methodology, but it fell behind with Phase III, which was going to tackle the simplification of hedge accounting.   With the overhaul originally planned for Q3, then…

Read More