New reporting rule for hedge accounting
Accountants have welcomed changes in accounting rules to "hedge" accounting for when companies try to mitigate against currency fluctuations. Nick Huber reports.
The revised standard (IFRS 9, Financial Instruments) by the International Accounting Standards Board (IASB) hopes to make one of the most complex accounting rules a bit simpler.
A date hasn't been set for when it will come into force. It was due to start in January 2015.
Hedge accounting is way for companies to reduce volatility in their reported results stemming from, for example, foreign currency exposure. It's widely used by both financial and non-financial companies.
Nigel Sleigh-Johnson, head of ICAEW’s financial reporting faculty, said...