Practical guide on general hedge accounting Dec 2013 | Page 15

Practical guide

for an entity electing de-designation included:


The high administrative burden might make hedge accounting too onerous and costly.



Depending on how the effectiveness assessment worked, it wanted to apply a different method of
assessing hedge ineffectiveness.

IFRS 9 prohibits voluntary de-designation, since the Board considered that this undermines the usefulness of
financial information. However, this is not expected to be a significant issue in practice, since an entity
always has the ability to change its risk management objective or to terminate its hedging instruments.

General hedge accounting

PwC  13