EFRAG supplements comments to the IASB Exposure Draft Hedge Accounting
23 February 2011
EFRAG published a supplement to its draft comment letter on the IASB Exposure Draft Hedge Accounting. Comments on the letter are invited by 2 March 2011.
EFRAG issued its draft comment letter to the IASB in response to the Exposure Draft Hedge Accounting (the ED) in January 2011. One of the concerns in the draft comment letter related to the non-eligibility for hedge accounting of a benchmark component in hedging a debt instrument with a negative indexation to the benchmark (the sub-LIBOR issue), which might create an inconsistency with risk management practices. Another concern related to accounting for combinations of financial assets, financial liabilities and derivatives that result in a fixed net return.
During its February 2011 meeting, EFRAG discussed different scenarios dealing with these concerns. It was tentatively agreed to bring this matter to the IASB’s attention.
This document is a supplement to EFRAG's draft comment letter and asks constituents a number of questions on these two concerns.
Press release
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