IASB cautions hedging fix won’t be perfect, but it will help
Banks optimistic that new model could prevent broken hedges driving balance sheet volatility
The International Accounting Standards Board is seeking to manage expectations over a new method for recognising hedging positions in financial statements, amid optimism from banks that the changes can solve longstanding problems with reporting derivatives positions.
“We know the benefits of it, of course,” said Riana Wiesner, a technical director at the International Accounting Standards Board (IASB). “[Which is] not to say it is perfect, and not to say there aren’t going to be things people are
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