HEDGE ACCOUNTING MADE EASIER

摘要

The International Accounting Standards Board (IASB) has released the final draft of its proposals on general hedge accounting which is a key part of the overhaul of accounting for financial instruments. The draft will be available until early December 2012, after which time the IASB intends to proceed to finalise the proposals. These new proposals are likely to find favour across a broad spectrum because the core principle is to align hedge accounting with an entity's risk management strategies and move away from some of the more prescriptive rules in the current standard, which can make hedge accounting difficult to achieve now, thus increasing volatility in the income statement. A company will be able to reflect, in its financial statements, an outcome that is more consistent with how management assesses and mitigates risks for key inputs into its business.