IFRS 9 is the replacement of IAS 39 and comes into effect from 1 Jan 2018 (can be adopted early). IFRS 9 attempts to simplify hedge accounting. The 80% to 125% bright line test is removed which means that only the ineffective portion of a hedge goes to P&L if the hedge is deemed to fall outside of the parameters. The need to separate time and intrinsic value of an FX option is also removed.

How Hedgebook helps:

Hedgebook’s valuations can be used in the effectiveness testing requirements of hedge accounting and is used by a number of public and private companies to achieve this.