Global Standards for the world economy

Friday 15 January 2021

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IFRS 9 Financial Instruments—Transition for hedge accounting

 Issue rejected–Agenda Decision

IFRS 9 Financial Instruments—Transition for hedge accounting

The Interpretations Committee received a request for guidance in respect of two issues pertaining to hedge designation and hedge accounting in situations in which an entity makes the transition from IAS 39 Financial Instruments: Recognition and Measurement to IFRS 9 Financial Instruments.

More specifically, the Interpretations Committee has been asked to consider:

  1. whether an entity can treat a hedging relationship as a continuing hedging relationship on transition from IAS 39 to IFRS 9 if that entity changes the hedged item in a hedging relationship from an entire non financial item (as permitted by IAS 39) to a component of the non-financial item (as permitted by IFRS 9) in order to align the hedge with the entity’s risk management objective (Issue 1); and
  2. whether an entity can continue with its original hedge designation of the entire non-financial item under IFRS 9 (Issue 2).

Project stages


Completed: January 2016