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May 03, 2011




Consiering the quality of the IASB Board members, I am not surprised that they will vote for such document.

Of the 15 IASB Board members, I don't know how many actually know much about hedge accounting. What a shame! If you doubt my observation, you can check it out by listenign to their Board meetings.

In regards to the ED, I don't understand why it starts by saying that hedge accounting is an exception to the general accounting model, then tries to broaded its application.

I also don't understand why it states that its objective is to reflect risk managment, then limits hedging accounting of credit risk, inflation, etc.

Also, if IASB is so keen on the concept of reflecting risk managment, then why not try to account for all the risk that entity manages? Why is hedge accounting optional?


Independent Accountant

I would end hedge accounting. That SFAS 133, as interpreted, is 1,060 pages, shows it has no conceptual basis.

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