IAS 9 (IAS 39 replacement project) delayed until 2015

Posted on 7 July 2011 by Julie Duncan

At the IFRS Conference held in Zurich on 5th July 2011, IFRS staff member Sue Lloyd announced their recommendation to the IFRS board to delay IAS 9 adoption until 2015.This is yet to be formally confirmed by the IFRS Board.

A delay to the timetable is bound to be welcome news to banks who are struggling to understand and implement this far reaching accounting standard. However early adopters can still take advantage of improvements in the standard, particularly to hedge accounting – and if you adopt before January 2012 you will not need to retrospectively report under IAS 9 rules.

The next important date to watch is the final general hedge accounting standard in Q3 2011 and exposure draft for macro hedging, due to be published Q4 2011.

Reporting & Managing Basis Risk

Posted on 1 July 2011 by Julie Duncan

Thank you to everyone who attended our Reporting & Managing Basis Risk Webinar. This proved to be an important topic with 18 firms attending.

The FSA have introduced a new basis risk report. This report is helpful for the regulator as it gives trends and peer comparison.

One of the conclusions from the meeting was that the FSA Basis Risk Report is a rather crude measure and 59% of our delegates use their own custom in-house reports instead, with a further 18% developing in-house reports for basis risk.

Additional basis risk reporting and analysis techniques were discussed and are being deployed by ALMIS® users, including static sensitivity, forward reports and fully dynamic sensitivity.