IASB asks whether hedge accounting is doing its job
The International Accounting Standards Board (IASB) wants to know whether its hedge accounting rules are pulling their weight. A new Request for Information asks investors, companies, auditors and regulators two questions: Are the requirements in IFRS 9 and the related disclosures in IFRS 7 delivering what was promised? And are companies paying a reasonable price to apply them?
Hedge accounting is meant to show in the accounts how a company uses financial instruments to manage specific risks. “We want to know whether our requirements are actually supporting that aim in practice,” says Acting Chair Linda Mezon-Hutter.
This is the last leg of the IASB’s post-implementation review of IFRS 9, after earlier rounds on classification and measurement and on impairment. It lands at the same time as the UK Financial Reporting Council’s latest annual review, which anticipates a thematic review of corporate financial instruments reporting, due this autumn, to focus on hedge accounting. Any changes to the IFRS 7 disclosures would, eventually, be reflected in the IFRS Accounting Taxonomy.
Comments are open until 26 January 2027.
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