Accounting for initial margin under IFRS 13
Chris Kenyon and Richard Kenyon show why initial margin should be part of the fair value of a derivative
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Initial margin (IM) is required by central counterparties and regulations. Chris Kenyon and Richard Kenyon provide an analysis of International Financial Reporting Standard 13, which indicates margin valuation adjustments should be reflected in fair value since exiting affected trades requires the acquiring institution to face the same cost drivers from IM. Furthermore
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