Hedge Accounting Transition Provisions upon Adoption of IFRS 9
Entities are required to adopt IFRS 9 for annual periods beginning on or after 1 January 2018 although early application is permitted. However, in relation to hedge accounting, entities have an accounting policy choice to ignore the hedge accounting provisions contained in Chapter 6 of IFRS 9 and continue applying the hedge accounting requirements of IAS 39 to all hedges. It is expected that this accounting policy choice will be removed once the IASB has completed its macro hedging project. Entities will have the ability to subsequently adopt the hedge accounting provisions of IFRS 9 after their initial adoption of IFRS 9 but would not be able to switch back to the IAS 39 hedge accounting provisions once IFRS 9 hedge accounting provisions have been adopted. The paragraphs below summarise the transition provisions for entities adopting Chapter 6 of IFRS 9.