Dealers are predicting an increase in the use of options by non-financial corporates under new accounting standards. The new approach would address an options-specific source of earnings volatility that has made corporate hedgers reluctant to use the product.
Under the current International Accounting Standard (IAS) 39 rules, the mark-to-market of the time value of an option is reported in a hedger's profit and loss (P&L) statement. The new International Financial Reporting Standard 9 (IFRS 9) s
The week on Risk.net, March 10-16 2018Receive this by email