IASB Proposes Improvements to Hedge Accounting

Date: 9 December 2010

Source: IFRS
 
Type: Exposure draft for comment

The IASB has published a draft for comment on the accounting of hedging activities. Part of the IFRS’ Financial Instruments project, which aims to simplify the classification and measurement requirements for financial instruments, the model in the Draft aims to better reflect companies’ risk management activities in their financial statements; this is achieved by advocating a principle-based, instead of rule-based approach to hedge accounting. The suggested model aims to also provide more useful information to investors.

Deadline for comment: 9 March 2011.