Fair value accounting: an open and shut case
For the first time this year many financial institutions will have included derivatives at their fair value on balance sheets and, in many cases, this will have been a major headache.
Case Study
Whilst COREP has been dominating the headlines in terms of changes in the regulatory reporting environment, new hedge accounting standards are being introduced for banking firms.
IAS 9 (IAS 39 replacement project) delayed until 2015
At the IFRS Conference held in Zurich on 5th July 2011, IFRS staff member Sue Lloyd announced their recommendation to the IFRS board to delay IAS 9 adoption until 2015.This is yet to be formally confirmed by the IFRS Board.
Phase III – Hedge Accounting
The International Financial Reporting Standards Board published their exposure draft on hedge accounting on 9th December 2010.