Isda says hedge accounting ED lacks clarity
Thursday 10 March 2011 - by Nicola York
The International Swaps and Derivatives Association has expressed concerns over key parts of the exposure draft on hedge accounting saying there is a lack of clarity in the wording of the document.
Meanwhile, the Japanese Bankers Association wants the IASB to reconsider some aspects so that financial statements better reflect the realities of enterprise risk management behaviour.
The JBA also pushes for the IASB to rethink the timing of implementing the exposure draft due to the continuation of its discussions on the hedge accounting applied to open portfolios.
It says: "We believe this raises the need to reconsider the timing with which the exposure draft is applied because banks will need to conduct comparative investigations of the proposed hedge accounting model in light of the discussion on macro hedge accounting.
"There is also the potential for the content of the exposure draft to be inconsistent with the discussion on macro hedge accounting, which we believe will necessitate a reconsideration of the exposure draft in light of that discussion."
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