Banks make headway on IAS 39 macro hedging

Banks had opposed the original IAS 39 guidance that dictated that all derivatives had to be recognised on the balance sheet at fair value unless they qualified for the stringent conditions of hedge accounting (FX Week, June 23).

It also said that macro hedging -- where a whole portfolio of different instruments is hedged -- would not qualify for hedge accounting unless a link could be established between derivatives and their underlying assets or liabilities.

But at a meeting in Rome on June