Risk.net

Comment

There seems to be a single thread entwining virtually every quarter of Australia’s derivatives and risk management businesses at the moment. This single threadis the country’s convergence towards International Accounting Standards(IAS), and more specifically, the adoption of IAS 39 scheduled for January 2005.Indeed, the changes for the country’s firms are likely to be enormous,and the effects are being felt across the whole derivatives spectrum. In simpleterms, IAS 39 will put derivatives transactions slap bang on to the balance sheet.If the transaction is not classed as an effective hedge, the derivative willhave to be marked-to-market, potentially introducing a greater level of volatilityinto company results.

australiacover-jpg
    • the editor
  • LinkedIn  
  • Save this article
  • Print this page  
In the corporate world, the scheduled implementation of IAS 39 is being toutedas one of the reasons for a decline in the use of complex derivatives for hedgingpurposes. With treasurers required to fair value their derivatives exposures – anarea in which many have little or no training – some corporate treasurersare erring on the side of vanilla products (seepages 2–3).

Meanwhile, IAS is also proving to be a sticky issue in Australia’s bustlingsecuritisation market. Market participants are

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Copyright Infopro Digital Limited. All rights reserved.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

Copyright Infopro Digital Limited. All rights reserved.

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

More on Regulation

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here