Tuesday, 1 March 2016

Looking for help on hedge accounting?

For many accountants out there, financial instruments has always been a tricky area to master. There are so many variables, and the need to exercise your own judgement. Hedge accounting is a specific area of financial instruments that accountants spend a lot of time trying to get right. 

IFRS 9 Financial Instruments (FRS 109 in Singapore) was released recently which introduced new rules for hedge accounting effective 1 January 2018. One of the key reasons for the new Standard is due to criticisms that the hedge accounting rules covered in the current IAS 39 Financial Instruments: Recognition and Measurement (FRS 139) can't be related back to an entity's risk management activities, the whole point of using derivatives in the first place.

At the same time, the International Accounting Standards Board has decided, as a matter of accounting policy, that the hedge accounting rules under IAS 39 will continue to be allowed for entities that feel that it meets their needs. 

The brand new publication by Wolters Kluwer, Derivatives and Hedge Accounting,  addresses hedge accounting under both IAS 39 as well as the new IFRS 9. With the adoption of the complete IFRS 9 in Singapore in 2018, we expect many accountants will need to understand the new Standard and decide which treatments are best for their company. 

This book was collaboratively written by four top educators from Nanyang Technology University, who recognised the need to help both accountants and accounting students out there in fully understanding derivatives and hedge accounting.

Interested? Contact your regular Account Manager now! If you're new to us, feel free to visit our online store. Don't wait!

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