The different valuation methods of banking book positions are resulting in undesired fluctuations of the P&L result. IAS 39 provided a framework (hedge accounting) to deal with and offset these P&L result fluctuations. However, the strict rules for hedge accounting often limited the implementation of appropriate hedging strategies. With the new standard IFRS 9, the points of critics of the industry has been taken into account, trying to make the framework of hedge accounting more practical. Especially, the risk management strategy has become more important and is assigned a key factor in IFRS 9 hedge accounting. The following article tries to gives an overview of the most remarkable changes of IFRS 9 compared to IAS 39.
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