The International Accounting Standards Board (IASB) issued today Eligible Hedged Items (an amendment to IAS 39 Financial Instruments: Recognition and Measurement).

The amendment clarifies how the existing principles underlying hedge accounting should be applied in two particular situations. 

The International Financial Reporting Interpretations Committee (IFRIC) asked the IASB to provide additional guidance on what can be designated as a hedged item.

The responses to an exposure draft of proposed guidance (published in September 2007) indicated that diversity in practice existed, or was likely to exist, in the designation of:

(a) a one-sided risk in a hedged item, and

(b) inflation in a financial hedged item.

The IASB has therefore focused on developing application guidance to illustrate how the principles underlying hedge accounting should be applied in those situations.

Entities are required to apply the amendment retrospectively for annual periods beginning on or after 1 July 2009, with earlier application permitted.

For further information on the amendment to IAS 39, please visit the project Web pages.

Eligible Hedged Items (Amendment to IAS 39 Financial Instruments: Recognition and Measurement) is available for eIFRS subscribers from today. Those wishing to subscribe to eIFRSs should visit the online shop or contact:

IASC Foundation Publications Department,
30 Cannon Street,
London EC4M 6XH, United Kingdom.

Tel: +44 (0)20 7332 2730
Fax +44 (0)20 7332 2749

Email: publications@iasb.org>

Printed copies (ISBN 978-1-905590-58-2) will be available shortly, at £10 plus shipping, from the IASC Foundation Publications Department.

Press enquiries

• Mark Byatt , Director of Corporate Communications, IASB
  Telephone: +44 (0)20 7246 6472
  Email: mbyatt@iasb.org
• Sonja Horn , Communications Adviser, IASB
  Telephone: +44 (0)20 7246 6463
  Email: shorn@iasb.org

Technical enquiries