Macro-hedging accounting rules overhaul proposed

[SINGAPORE] The International Accounting Standards Board (IASB) is proposing an overhaul of accounting standards on macro hedging, which will substantially change the way banks and financial institutions account for dynamic risks - such as interest rate risks - in their books.

The move is part of the IASB's long-running effort to update accounting rules for financial instruments (IAS 39). The portion on macro hedging was spun off as a separate project because of its complexity and so as to "elicit views from a broader range of constituents".

Yesterday, Singapore's Accounting Standards Council (ASC) said that it would be accepting comments on these proposals. The public has until Sept 5 to submit its comments to the ASC.