Written by: Barbora Choi on Thu Apr 16
Exposure Draft Risk Mitigation Accounting in a Nutshell
At the center of attention is the repricing risk, which arises when interest rates on asssets and liabilities reset at different times or amounts. This can occur due to mismatches in maturities or the use of floating versus fixed interest rates.
“There's a world of difference between truth and facts. Facts can obscure truth.”
I've been hesitant to write about the new IASB Project on Risk Mitigation Accounting (amendments to IFRS 7 and IFRS 9) due to its complexity.
In the end, I tried and you may find the result in the attached carousel ⏩.
🔹 The Exposure Draft: https://lnkd.in/eF2CD6Ki
🔹 and Illustrative Examples can be found here: https://lnkd.in/e8-RwzHR
headline quote by Maya Angelou via Goodreads
