Derivatives and Hedge Accounting, 2nd Edition

This book is a revised edition of the very well-received “Derivatives and Hedge Accounting” book published in 2016.

This revision is necessitated mainly by the fact that IAS 39 Financial Instruments: Recognition and Measurement has been partially superseded by IFRS 9 Financial Instruments effective 1 January 2018. With the partial replacement of IAS 39 by IFRS 9, the classification and measurement of financial assets are changed, and the changes have been made in this revised edition. However, the hedge accounting rules in IAS 39 are not superseded by IFRS 39 hedge accounting rules. Thus, currently, entities may choose, as a matter of accounting policy choice, to apply either the hedge accounting rules of IAS 39 or those of IFRS 9, to account for their hedging transactions. Consequently, this revised edition still contains a chapter on hedge accounting under IAS 39 and a chapter on hedge accounting under IFRS 9.

Another development that necessitates the revision of the book is the ongoing “IBOR reform” - phasing out of interbank offer rates (IBORs) such as the London Interbank Offer (LIBOR) and the transition to new interest rate benchmark. In this revised edition, the IBOR reform and its implication on hedge accounting through the amendments made to IAS 39 and IFRS 9 hedge accounting rules in accounting for interest rate hedging relationships have been discussed.

Key Features

· The revision of this book is necessitated by the fact that IAS 39 Financial Instruments: Recognition and Measurement (except its hedge accounting provisions) has been superseded by IFRS 9 Financial Instruments effective 1 January 2018, and due to the IBOR Reform.

· This book is written by four authors with many years of teaching, research and practical experience.

· The law is updated as of July 2021.

Topics Covered

· Accounting for Derivatives

· Hedge Accounting under IAS 39

· Hedge Accounting under IFRS 9