Survey: Hedge Accounting

By Christopher Dowsett, CAE
November 1, 2018

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:



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



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



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 editor-in-chief/vice president, Publications, at IMA. You can reach him at cdowsett@imanet.org.
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