The IASB is seeking stakeholder feedback to review whether hedge accounting requirements in IFRS 7 and IFRS 9 are working as intended and delivering the expected benefits for investors and other users of financial statements.
The post-implementation review will also assess whether the costs of applying the requirements are broadly in line with the IASB’s expectations, a news release said.
“Hedge accounting is intended to give a clearer picture of the effects of a company’s risk management activities in its financial statements. We want to know whether our requirements are actually supporting that aim in practice,” Linda Mezon-Hutter, acting chair of the IASB, said in the release.
According to the release, the review will examine hedge accounting requirements for two IFRS Accounting Standards: IFRS 7, Financial Instruments: Disclosures and IFRS 9, Financial Instruments.
The deadline for comment is 26 January 2027.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.