Hypothetical Derivatives and Currency Basis
Since FAS 133 was introduced nearly a decade ago and IAS 39 was introduced over five years ago, we continue to see differing interpretations of these standards being applied in the marketplace. A good...
View ArticleWhen Opposites Distract – FASB and IASB
When the FASB and the IASB started talking about the convergence of accounting standards back in 2006, the road map was pretty optimistic. Now the path to convergence is clearly widened further. No...
View ArticleImporters Beware – IFRS 9 Could Result in Lost Margin
One of the proposed changes from IAS 39 in the new standard IFRS 9 is the removal of the ability to make ‘basis adjustments’ to non-financial hedged items. This could be a major issue for many...
View ArticleIFRS 9 Business Model Test – A Challenging New Principle
Under IFRS 9, IASB has taken a more simplified approach by reducing the classification to two categories: amortized cost or fair value.
View ArticleInterest rate risk, Sweden, and FAS 157 (ASC 820)
Common concerns among Scandanavian countries include challenges of non-performance (i.e. credit) risk in valuing derivatives.
View ArticlePreparing for IFRS 9
Companies should undertake a review of their current risk management and hedge accounting policies to highlight how the proposed changes will impact these policies given the new IFRS 9 requirement. The...
View ArticleIFRS 9 Hedge Accounting Jeopardizes Convergence Dream
In September this year, the International Accounting Standards Board (IASB) finally issued the Review Draft for Hedge Accounting, phase three of the replacement project for IAS 39 (under the banner of...
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