Posts Tagged ‘reval’

THE 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…

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Hurricane Irene: Operational Risk Can Hit Close to Home

I originally started this blog as I watched the Tsunami tragedy unfold in Japan. But then thought it may not relate well with readers in the US or Europe, far away from nuclear reactors built on the “ring of fire.” Then in July, I was stranded in New Zealand by excessive snowfalls and watched as…

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Conflicting Messages: Death of Short Cut vs Death of Quantitative Assessment

While many will commend the FASB for mandating measurement in all circumstances, it seems odd to go the other direction by eliminating the highly effective criteria under the current quantitative assessment requirement. The FASB states that “eliminating the shortcut method and the critical terms match method would result in a more consistent model for assessing hedge effectiveness.”

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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.

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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.

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