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Survey: Hedge Accounting

By Christopher Dowsett, CAE
November 1, 2018
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A Deloitte survey of more than 3,000 business professionals found that businesses remain uncertain about how to effectively leverage the new optional hedge accounting rules, ASU No. 2017-12, which become effective on January 1, 2019. According to respondents, obstacles to implementation include:

 

21.0%

Developing an efficient process for reviewing existing hedging instruments, strategies, and contracts across the organization and evaluating them against the new standard

 

20.2%

Navigating the gray areas of the standard, such as how to hedge assets without contractually specified terms

 

20.7%

Education (e.g., “This is my organization’s first time using hedging strategies, and there is a significant learning curve.”)

 

For more results, see Deloitte Dbriefs, “Hedge accounting: Simplifying the accounting for hedging activities,” at http://bit.ly/2QVWCoA.

 

Christopher Dowsett, CAE, is senior editor/director, Publications, at IMA. You can reach him at cdowsett@imanet.org.
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