Have you got your Christmas list in order?

21 December 2017

So, it’s 21 December and there are only 4 sleeps before Christmas! If you have been lucky you might have already made a snowman this winter. But now you are getting ready for the big day. Have you ordered your food? Are all the Christmas presents bought and wrapped and under the Christmas tree? If you are expecting a visit from Santa you’ll also need to make sure you have some milk and mince pies to leave out, and don’t forget the carrots for the reindeer! 

Another important date that will be arriving soon is New Year’s Day. This means another list of important things to get done. Maybe you have even started thinking about your New Year resolutions? No doubt your hedge documentation is already in place for the New Year! Yes, that’s right, IFRS 9 is effective from 1 January 2018 and it is nearly here. 

But we might have some help for you in this busy period as we are delighted to announce the release of our latest and most comprehensive guide to IFRS 9's hedge accounting requirements for corporates.  In this publication we answer the questions we are asked most often by corporates applying IFRS 9's hedge accounting rules for a range of hedging strategies commonly used in practice. 

It’s comprehensive, at over 200 pages!  But it needs to be. Not only have we illustrated in detail how to apply the standard to some common hedge relationships; we have also given an overview of the requirements and of what has changed from IAS 39, as well as answering some of the most commonly asked questions that have arisen in practice.  

Overall, we believe that, by placing greater emphasis on an entity’s risk management practices, IFRS 9 is an improvement for hedge accounting. It will provide more flexibility, and it might allow companies to apply hedge accounting where previously they could not. As a result, this is an opportunity for corporate treasurers and boards to review their current hedging strategies and accounting, and to consider whether there are any improvements or beneficial changes that can be made under IFRS 9. However, some of the changes might lead to greater complexity in accounting and systems requirements and therefore companies should carefully assess the impact of the changes.  

Maybe the adoption of IFRS 9 means a bit more work for you before the New Year. But we hope this publication will help guide you through some of the common issues we see so that you also have time to enjoy the festive period. 

If you’d like to read the full document please download this publication  from inform.pwc.com. ​

This week's guest bloggers are Sandra Thompson and Chris Raftopoulous. Connect with them on LinkedIn.

 

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