Hedge accounting: what will IFRS 9 amendments mean for you?

The IASB published amendments to IFRS 9 on hedge accounting in November 2013. This is the third phase in the project to replace the accounting for financial instruments under IAS 39. The new requirements align hedge accounting more closely with risk management, and so should result in more ‘decision-useful’ information to users of financial statements. The requirements, which address general hedging of financial and non-financial items, will have an impact on most businesses currently doing hedge accounting or considering it.

This video looks at the main changes introduced by IFRS 9 and their practical implications. In particular:

This video looks at the main changes introduced by IFRS 9 and their practical implications
  • Timeline
  • Main features on IFRS 9 hedge accounting:
    • Qualifying criteria for hedge accounting
    • Hedging instruments
    • Hedged items
  • Alternatives to hedge accounting
  • Accounting policy choice and transition rule

View this video on YouTube

 

The video helps companies, especially non-financial ones, understand the new requirements and how they will impact their financial statements, current risk management practices and investor communications, among other issues.

The video is presented by Sebastian di Paola, leader of PwC's Global Corporate Treasury Solutions Group and Chair of PwC's Corporate Treasury Technical Committee; Ian Farrar, partner in Accounting Consulting Services and Leader of Corporate Treasury Solutions in PwC Hong Kong; and Yann Umbricht, Leader of Corporate Treasury Solutions in PwC UK.

If you have questions on the issues discussed, please get in touch with your local PwC contact or email gabriela.d.martinez@uk.pwc.com.