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 proposed rules can operate on three core levels.

Since the financial crisis, many organisations have experienced significant P&L volatility on their cross currency interest rate swaps through movements in currency basis. Recently, a new technique for applying hedge accounting to these instruments has emerged…

Under IFRS 9, IASB has taken a more simplified approach by reducing the classification to two categories: amortized cost or fair value.