IFRIC May 2007
04 May 2007
The IFRIC was asked how effectiveness should be assessed when an option, in its entirety, is designated as a hedging instrument to hedge variability in future cash flows in a cash flow hedge.
IFRIC Septmber 2007
07 September 2007
The IFRIC received requests relating to a situation in which an entity designates an option, in its entirety, as a hedging instrument to hedge a one-sided variability in future cash flows in a cash flow hedge. All changes in the fair value of the option (including changes in the time value component) are considered in assessing and measuring hedge effectiveness.
IFRIC July 2007
12 July 2007
This is a re-exposure of reasons for the IFRIC not taking this item on to its agenda, first published in the May 2007 IFRIC Update.
In the May 2007 IFRIC Update, the IFRIC mentioned that, on the basis of the requirements in IAS 39, the approach for assessing hedge effectiveness suggested in the requests is not allowed under IAS 39.
IASB December 2006
13 December 2006
At its meeting in October, the Board discussed whether to provide additional guidance on what can be designated as a hedged portion of a financial instrument under IAS 39. The Board directed the staff to develop a proposal on the form and content of any additional guidance. At this meeting, the Board discussed the staff’s proposals.
IASB October 2006
18 October 2006
The IFRIC received submissions asking whether various risks associated with specific portions of a cash flow or fair value exposure might qualify for hedge accounting under IAS 39: for example, could inflation risk qualify as a hedged portion of an interest-bearing asset or liability.