BCB Consults on Hedge Accounting Criteria Related to IFRS 9

Due to the length and complexity of the topic, the incorporation of the international standard on financial instruments was divided into stages. The first stage covered the criteria for recognition, classification and measurement of financial instruments, while the second stage addressed the provision for expected losses associated with the credit risk of financial instruments. Both were the objects of earlier public consultations (No. 54/2017 of August 2017 and No. 60/2018 of February 2018). This proposed draft resolution represents the third stage of this process and addresses the criteria for accounting for hedge transactions. After the completion of these three steps, the requirements for disclosure and presentation of financial instruments in the financial statements of publication or mandatory disclosure will be regulated.

The measures proposed are part of the efforts undertaken by BCB to promote the convergence of accounting regulation applicable to the National Financial System with the best internationally recognized best practices, in particular with IASB. This convergence consists of incorporating, into the Accounting Plan of the Institutions of the National Financial System (COSIF) of the international precepts, the IFRS 9 on financial instruments.

Related Links (in Portuguese)

• Consultation 67/2018
• Consultation 60/2018
• Consultation 54/2017

Comment Due Date: October 05, 2018

Keywords: Americas, Brazil, Banking, Accounting, IFRS 9, Hedge Accounting, IASB, BCB