Deeply flawed (TT Jun06 p32-33)

Hedge accounting is a long, laborious process and time is needed both to ensure the document will satisfy the auditors and that the testing can be completed effectively. IAS 39 Financial Instruments: Recognition and Measurement is a mixed-model standard and as a result produces results which are contradictory. Treasurers are among a small band of people who actually understand IAS 39 accounting.