|Date||Title / Description||Documents|
January 4, 2017
CCPs’ rule book changes on the settled-to-market model and impact on hedge accounting
On January 4, 2017, ISDA’s Accounting Committee issued a confirmation letter to the Staff of Office of the Chief Accountant of the Securities and Exchange Commission (SEC) related to an ISDA whitepaper on the accounting Impact of central counterparty rule book changes. The SEC staff confirmed all the conclusions of the ISDA Accounting Committee outlined in the whitepaper and follow-up submission – namely i) that the changes to the rule books of LCH and CME, as supported by legal opinions from external counsel, should result in the presentation of variation margin amounts as settlement of the derivative exposure and not collateral against it for purposes of applying the accounting and presentation guidance in ASC 815 (US GAAP covering derivatives and hedging); and ii) that the de-designation and re-designation of existing hedging relationships under ASC 815 would not be required solely because of these changes to the respective CME and LCH rule books. ISDA recognizes the significance of the continued application of hedge accounting when the hedging derivative has been affected by these rule changes and its importance to clearing members and end users.
February 9, 2016
ISDA responds to IASB consultation on Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts
On February 5, ISDA’s Accounting Committee responded to an International Accounting Standards Board (IASB) proposal to address the different effective dates of application of IFRS 9 ‘Financial Instruments’ and the new insurance contracts standard ‘IFRS 4’. Members agree this is an important issue for insurance companies. Resolving this issue promptly will help ensure IFRS 9 is endorsed as soon as possible and remove any uncertainly on the date of application.
February 9, 2016
ISDA response to tentative agenda decision on IAS 32 Financial Instruments: Presentation- Offsetting and cash pooling
On February 4, ISDA’s Accounting Committee responded to the International Financial Reporting Standards (IFRS) Interpretations Committee on a fact pattern related to notional cash pooling facilities and the application of the offsetting rules. We do not believe that ‘intention’ as required by IAS 32 implies a certainty in period end balances, but instead an expectation in the net exchange of settlement amounts arising from an asset and liability on a specified date. We believe the tentative agenda decision should be amended to highlight the principles of IAS 32 and should not set out an opinion for this specific fact pattern.
December 14, 2015
ISDA responds to the IASB’s on the ‘Request for Views: 2015 Agenda Consultation’
On December 11, ISDA’s Accounting Committee responded to a public consultation issued by the International Accounting Standards Board (IASB) seeking views on whether the IASB has the right priorities for its work plan, and whether the projects identified are indeed the most pressing areas for improving International Financial Reporting Standards (IFRS).
November 25, 2015
ISDA responds to IASB consultation on the Conceptual Framework
On November 25, ISDA’s Accounting Committee responded to a public consultation issued by the International Accounting Standards Board (IASB) seeking feedback on an exposure draft proposing a revised Conceptual Framework (CF). The CF describes the basic concepts related to the preparation and presentation of financial statements underpinning the accounting of derivatives transactions.
November 19, 2015
ISDA responds to the EFRAG’s consultation on Conceptual Framework
On November 18, ISDA’s Accounting Committee responded to a public consultation issued by the European Financial Reporting Advisory Group seeking views from all stakeholders on an exposure draft published by the International Accounting Standard Board on the Conceptual Framework (CF). The CF describes the basic concepts that lie beneath the preparation and presentation of financial statements underpinning the accounting of derivatives transactions.
October 15, 2015
Consideration of Accounting Analysis for CCP Recovery and Continuity Tools
This paper examines some factors that central counterparties (CCPs) should consider in structuring partial tear-up methodologies so as not to contravene rules on offsetting under the applicable accounting standards, which would render cleared derivatives uneconomical. The paper notes that CCPs can structure partial tear-up in a number of ways. Whatever the structure, the CCP’s methodology for partial tear-up should be transparent, written in its rule book, available to all potentially affected parties and should respect US GAAP and IFRS accounting standards.
June 30, 2015
ISDA responds to EFRAG’S assessment on IFRS 9 Financial Instruments endorsement in the EU
On June 30, ISDA’s Accounting Committee responded to a consultation issued by the European Financial Reporting Advisory Group (EFRAG) seeking feedback and views from stakeholders on the endorsement of IFRS 9 Financial Instruments in the European Union.
January 16, 2015
ISDA response to IASB draft on measuring quoted investments in subsidiaries, JVs and associates at fair value
On January 16, ISDA’s Accounting Committee responded to a consultation by the International Accounting Standards Board (IASB) seeking feedback and views from all stakeholders on measuring quoted investments in subsidiaries, joint ventures and associates at fair value (ED/2014/4).
November 28, 2014
ISDA response to the IVSC exposure draft on the valuation of equity derivatives
On November 28, the Accounting Committee responded to a consultation issued by the International Valuation Standard Council seeking feedback and views from all stakeholders on complex equity derivatives valuation topics.