The stated objective of the current IAS 39 hedge accounting regime was to neutralise the perverse outcomes of applying the standard’s basic provisions to the most widely used, commercially sound hedging strategies. But the experience of many practitioners is that IAS 39 hedge accounting has been at best only partially successful, and at worst has aggravated the problem. There is evidence that some companies are so anxious not to have to report the arbitrary fluctuations in earnings caused by the application of IAS 39, that they have ‘let the accounting tail wag the business dog’, and refrained from engaging in commercially prudent hedging activities.
The IAS 39 hedge accounting regime is ultimately based on broad principles but these are clouded by a plethora of specific rules – and in exceptions to them. The IAS 39 replacement standard, IFRS 9, will be mandatory for accounting periods commencing on or after 1st January 2018. Its hedge accounting regime will be both more principles-based and more pragmatic than the current IAS 39 regime. But many features of the new regime are without precedent and therefore untried, and some users will initially be taking advantage of the IFRS 9 option to retain the hedge accounting provisions of IAS 39, pending possible further developments.
The principal objectives of this course are to give participants a clear road-map through the maze of provisions and to give preparers and their managers a more informed basis for their hedge-accounting decisions, with a clear view of the costs and benefits of all the alternatives.
The course makes extensive use of real-life comparative case studies and of fully worked examples, carefully chosen in consultation with the client to maximise the relevance of the course to the client’s own requirement.
|Training Courses||Training Course Summary|
|IFRS 9||Be introduced to the IFRS 9 and how it differs from IAS 39|
|Transfer Pricing||This transfer pricing course is intended for those who need to understand different areas, functions and terms associated with transfer pricing|