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Macro hedging – Preparing for the project’s next phase

Macro hedging – Preparing for the project’s next phase

This IFRS Newsletter: Financial Instruments reports on the IASB macro hedging discussions.



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We report on the latest discussions on the IASB’s macro hedge accounting project.

The IASB has now completed its analysis of the feedback received on its April 2014 discussion paper on macro hedging. 

In its March meeting, the Board looked at feedback on areas including: 

  • revaluing managed exposures 
  • presentation and disclosures
  • applying the portfolio revaluation approach to other risks. 

For more detail on these discussions, read Issue 22 of our IFRS Newsletter: Financial Instruments (PDF 615 KB).


Future direction of the project

A range of ‘bigger picture’ views on the project were expressed towards the end of the meeting. 

Overall, Board members seemed to agree that the direction of the project would need to be decided before undertaking section-by-section deliberations. 

We expect the overall direction to be determined in future Board meetings. 


“Now that the feedback on the DP has been considered, the IASB will need to decide on the direction of the project before the next phase can begin.”


Summary of issues discussed

DP section Feedback received
Revaluing managed exposures Many respondents believed that the revaluation calculations would provide a faithful representation of dynamic risk management activities.
Presentation Most respondents supported a ‘single net line item’ presentation in the statement of financial position and an ‘actual net interest income’ presentation in the statement of profit or loss and other comprehensive income. Wide-ranging concerns were raised on the gross presentation of internal derivatives.
Disclosures Many respondents believed that robust disclosures are critical to achieving transparency and comparability.
Other considerations Many respondents supported the proposals on when to include exposures in managed portfolios.
Applying the portfolio revaluation approach (PRA) to other risks There were mixed views on applying the PRA to other risks.

Visit our IFRS Newsletters web page for the latest discussions on these issues.

And go to our IFRS – Financial instruments hot topics page for more on these and other aspects of financial instruments accounting under IFRS.

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