Banks win a partial reprieve from IAS 39
At a meeting held on July 22--24, the board decided to proceed with its proposals for macro-hedging -- where a whole portfolio of different instruments is hedged.
"It is based on the notion that the designation [the derivatives instruments to be hedged] is an amount rather than specific items in a portfolio, and that ineffectiveness is based on a percentage of the items in a portfolio," Wayne Upton, research director at IASB in London, told FX Week. Rather than an entire section of the portfolio
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