by François Masquelier, Chairman, ATEL
Many treasurers have forgotten that in January 2011 we will celebrate the 10th anniversary of IAS 39. Celebration or funeral? In the last quarter of 2010, the IAS Board is due to publish its new hedge accounting standard. It will be the third and last part of the complete revamp of IAS, which has transformed the life of we corporate treasurers. What has changed since 1 January 2001? It has revolutionised the whole hedging approach of corporates. Another question is whether the overhaul of IAS 39 is a revolution or a simplification.
Fair value in the firing line
The butt of frequent criticism in recent months, fair value has been singled out by shareholders and banks alike as the perfect scapegoat for the financial crisis with which we have been confronted. But we know, of course, that the responsibility lies elsewhere, albeit shared rather than attributable to a single cause. Notwithstanding all the criticism, fair value is actually enshrined in what will be the future standard on financial instruments, the son of IAS 39. Like father like son, as they say, and this proverb might very well apply in this case too.
The new measure's effective date of entry into force will be 1 January 2013, with early adoption possible from the end of 2009.