Comments in response to Exposure draft – Amendments to IAS 39 Financial Instruments: Recognition and measurement.
The IASB has proposed changes to IAS 39 with the aim of clarifying the circumstances when portions of the cashflow of a financial instrument may be designated as a hedged item and what risks can be separately hedged in an instrument. Although the ACT welcomes guidance in these areas our response objects to the restrictions that the proposed drafting creates, particularly through eliminating the use of hypothetical options to demonstrate effectiveness on hedging done with options.
