Hedge Accounting efter IFRS 9

Union Jack
Dannebrog

Hedge Accounting efter IFRS 9

Show full item record

Title: Hedge Accounting efter IFRS 9
Beskrivelse af Exposure Draft fra IASB, samt formåls-, konsekvens- og interessentanalyse af dets følgevirkninger og en analyse af de afledte muligheder og udfordringer for selskaber i Danmark
Author: Nordsten, Christian Bagi
Abstract: The subject for my study is the third part of the IFRS 9 project regarding hedge accounting which currently is displayed as an Exposure Draft (ED) from IASB. Danish companies listed on NasdaqOMX are subject to International Financial Reporting Standards (IFRS). I found it interesting to examine why the ED published, which requirements the ED contains and which changes to the financial reporting the ED can be expected to cause. Based on the above examination, I decided to further examine some selected issues and possibilities in the ED and the opinions that the groups affected by the ED hold. The examination is based on the annual reports for 2011 of the 14 non-financial companies listed on the C20 index on NasdaqOMX and further a major energy company in Denmark has been included. These annual reports have been read, and 4 of the companies reported of economic hedges (e.g. they were most likely not able to apply hedge accounting in compliance with the current standard IAS 39). In order to be able to conclude on the effect the ED would be expected to have on Danish annual reports simulations have been performed for some cases. The cases show that especially commodity and energy dependent companies are expected to benefit from the ED as several of the restrictions in IAS 39 are relaxed. The possibility to hedge risk components of non-financial instruments and the relaxations in regard of effectiveness measurement are concluded to be of special importance as they are expected to make it easier for companies to apply hedge accounting in their financial statements. This will lead to more relevant, comparable and understandable financial information. The examination is completed with an interview of an expert in the area of financial instruments and hedge accounting and a survey of the comment letters received by IASB in regard of the ED. Is is concluded that the major part of the respondents are overall positive but there are some downsides. The downsides are centered on mandatory rebalancing and that some economic hedges are still not allowed to be reported as hedge accounting due to restrictions in the ED. The mandatory rebalancing will lead to the companies no longer being allowed to voluntary stop hedge accounting. Based on my study, the conclusion is that when the ED is expexted to be implemented it will lead to better financial reporting as companies will be allowed and forced to provide more dynamic disclosures and the risk management strategies applied are more likely to be reported as hedge accounting in the annual reports.
URI: http://hdl.handle.net/10417/3215
Date: 2012-10-01
Pages: 99 s.
Files Size Format View
christian_bagi_nordsten.pdf 1.175Mb PDF View/Open

The following license files are associated with this item:

This item appears in the following Collection(s)

Show full item record