The International Accounting Standards Board (IASB) issued an amendment to
IAS 39 ‘Financial Instruments: Recognition and Measurement on Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk’. The amendments enable fair value hedge accounting to be used more readily for a macro hedge than under previous versions of
IAS 39.
The amendment will be part of the IASB’s set of standards to be adopted in 2005. The IASB will publish a proposed limited amendment to restrict the existing fair value option in April.
IASB also announced its intention to set up an international working party to examine the fundamentals of IAS 39 with a view to replacing the standard in due course. The financial instruments working party will assist in improving, simplifying and ultimately replacing IAS 39 and examine broader questions regarding the application and extent of fair-value accounting.
Press release
© IASB - International Accounting Standards Board
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