Request for Information - Post-Implementation Review IFRS 9 and IFRS 7 Hedge Accounting Requirements
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Post-Implementation Review: IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures - Hedge Accounting Requirements We want to hear your feedback on how the hedge accounting requirements in NZ IFRS 9 Financial instruments, and associated disclosure requirements in NZ IFRS 7 Financial Instruments; Disclosures are working in practice, including the costs and benefits of applying these requirements to your hedges. Your comments will help inform our feedback to the IASB on its Request for Information - Post-Implementation Review IFRS 9 and IFRS 7 Hedge Accounting Requirements. |
Objectives of IFRS 9 and IFRS 7 - Hedge accounting requirements
The hedge accounting requirements within NZ IFRS 9 Financial Instruments, and associated disclosure requirements in NZ IFRS 7 Financial Instruments: Disclosures became effective on 1 January 2021 and are equivalent to the International Accounting Standard Board's (IASB's) IFRS 9 and IFRS 7 standards.
The hedge accounting requirements in NZ IFRS 9 replaced the hedge accounting requirements in NZ IAS 39 Financial Instruments: Recognition and Measurement (excluding the macro hedge accounting principles).
The core objective of IFRS 9 hedge accounting, and associated disclosure requirements in IFRS 7, is to represent an entity’s risk management activities in the financial statements, so that the effects of using financial instruments to manage risk are transparently and faithfully depicted. The standard aims to:
- Better align accounting with risk management;
- Reduce artificial volatility and accounting mismatches;
- Provide more useful information to users;
- Make hedge accounting more principle-based and flexible than IAS 39; and
- Improve transparency through enhanced disclosures.
Why are we consulting?
The IASB is requesting information to inform their post-implementation review (PIR) of IFRS 9 and IFRS 7, specifically around hedge accounting requirements, to assess whether the standard is working as intended and achieving its objectives. More information on the RFI, as well as additional resources, can be found in the IASB's Request for Information - Post-Implementation Review IFRS 9 and IFRS 7 Hedge Accounting Requirements and on the IASB's website here.
To support this, we are seeking evidence-based feedback from New Zealand stakeholders on practical issues with NZ IFRS 9, and potential solutions. This will help inform our submission on the IASB’s review and ensure that any resulting amendments or clarifications address issues relevant and fit-for-purpose in the New Zealand context.
The IASB's RFI is focused on specific issues with applying IFRS 9 and IFRS 7, and whether the standard is operating as intended and fulfilling its objectives. The PIR is not a reconsideration of the core principles of the standard.
How to provide feedback
XRB submissions close on Monday 11 January 2027.
You can send your comments directly to the IASB by Tuesday 26 January 2027. If you do, sending a copy of your submission to the XRB via accounting@xrb.govt.nz would be appreciated.
All submissions will be published on the XRB website unless confidentiality is requested. If you object to the release of any information in your submission, please identify the specific parts and the reasons under the Official Information Act 1982. We reserve the right not to publish defamatory submissions. Submissions are subject to the Official Information Act 1982 and the Privacy Act 2020. The XRB will handle personal information in accordance with these Acts.