PwC's viewpoint on financial instruments accounting

PwC's viewpoint on financial instruments accounting

The global financial crisis triggered a major review of financial instruments accounting by standard setters and there has been a significant amount of debate over the last few years. You may have noted the International Accounting Standards Board (IASB) has published amendments to IFRS 9,'Financial instruments' regarding general hedge accounting (http://www.ifrs.org/Alerts/ProjectUpdate/Pages/IASB-completes-important-steps-in-reform-of-financial-instruments-accounting-November-2013.aspx).

What does this mean? These amendments to IFRS 9, 'Financial instruments' will provide a substantial overhaul of hedge accounting.

PwC New Zealand Partner Michele Embling says, "The new Hedge Accounting standard establishes a more principles based approach. It aligns hedge accounting more closely with risk management, addressing inconsistencies and weaknesses in the current model. This is good news as it should result in more 'decision useful' information for users of financial statements."

Attached: PwC document that provides an overview of the situation, including impacts for companies.
Straightaway_no_131_IFRS_9_Hedging.pdf

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