International Financial Reporting Standards (IFRS) are changing with the introduction of IFRS 9 in the UK and the rest of the EU from January 2018. This is the biggest development in financial instrument accounting in more than a decade and will have wide-ranging implications for corporates as well as financial institutions.

The Hedge Accounting section of IFRS 9 is expected to be the area of the new standard that has the most significant impact on corporate derivative users – with the changes affecting all existing hedge relationships. A wider range of commonly used risk management strategies should now be eligible for hedge accounting and the new rules should allow companies to reduce accounting volatility on existing hedging strategies.

Unusually for new IFRSs, implementation of the Hedge Accounting section of IFRS 9 can be deferred for the time being – meaning that companies can elect whether or not to adopt the new rules in 2018.

Download our white paper to discover:

  • How changes to hedge accounting could affect your business
  • Specific areas of the new rules that corporates should be aware of
  • What steps companies might want to consider taking ahead of adoption in 2018, including whether or not to adopt the new Hedge Accounting rules

In these three short videos, Colin McKee, Director, Capital & Risk Advisory, Lloyds Bank Commercial Banking, provides an introduction to IFRS 9, focusing on the Hedge Accounting changes, and discusses how the new accounting standard is expected to impact typical corporate derivative users.

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