The ACT is concerned that proposed accounting rules for financial instruments threaten – unless amended by the IASB – to have major adverse impact on treasury best practice in non-financial sector companies.
Two key points are being urged by the ACT on the IASB:
The ACT commented last week to the IASB (International Accounting Standards Board) in response to the Exposure Draft from the IASB, “Exposure Draft of Proposed Amendments to IAS39 Financial Instruments: Recognition and Measurement: Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk”.
The ACT welcomed the new flexibility included in the exposure draft but believes that before IAS 39 is finalised – and before it is adopted by the EU - certain outstanding points must be properly dealt with.
