IASB progresses dynamic risk management project

The IASB has been developing a new accounting model for banks’ interest rate hedging activities for some time now. The model has to take into account the way in which banks manage their exposures, and to arrive at an accounting outcome that aligns with the underlying economics of the risk management activities. In the May 2020 meeting, the Board decided to move forward with the latest version of the model, despite reservations that it does not conform with its Conceptual Framework.