Risk Mitigation Accounting–Proposed Amendments to IFRS 9 and IFRS 7
Project Type:
Influencing
Status:
Active
Milestone:
Consultation
On 3 December 2025, the International Accounting Standards Board (IASB) published the Exposure Draft Risk Mitigation Accounting–Proposed amendments to IFRS 9 and IFRS 7 with a 240-day consultation period ending on 31 July 2026.
Background
The implementation of IFRS 9 Financial Instruments aimed to introduce improved hedge accounting requirements. However, this did not provide a solution for complex risk management situations where risks are managed dynamically. In such cases entities were permitted to continue applying IAS 39 Financial Instruments: Recognition and Measurement. The IASB have noted that entities continue to find it challenging to account for their dynamic risk management activities in this manner, as the requirements are not designed for such situations, and the constraints make it difficult for entities to faithfully represent the economic effect of such risk management activities.
The scope of the Exposure Draft is limited to interest rate repricing risk, in instances where entities meet the criteria to demonstrate that this risk is being managed dynamically. The Exposure Draft aims to provide a more faithful representation of the entity’s understanding of its economic position for such risk management activities.
Consistent with the existing hedge accounting requirements of IFRS 9, the proposed requirements are voluntary. It is proposed that IAS 39 be withdrawn once the proposed amendments are available for use.
Alongside the Exposure Draft, the IASB published a snapshot of the proposed amendments as well as a request for fieldwork with preliminary and final results required by 31 July 2026 and 30 November 2026 respectively.
Outreach
The UKEB outreach plan includes discussions with stakeholders and public consultation on the UKEB’s Draft Comment Letter (DCL).
Draft Comment Letter
On 28 April 2026, the UKEB published its Draft Comment Letter in response to the IASB’s ED Risk Mitigation Accounting–Proposed amendments to IFRS 9 and IFRS 7. The public consultation period closes on 28 June 2026.
UKEB Meetings
UKEB Meetings
- 23 April 2026: Verbal Update
- 26 March 2026: Initial Draft Comment Letter for Board consideration
- 26 February 2026: Initial technical discussion
- 29 January 2026: Project Initiation Plan
Timeline
-
2
Consultation
Hide all milestone documentation
The UKEB published its Draft Comment Letter on 28 April 2026 for public consultation.
Draft Comment Letter - Risk Mitigation Accounting: Proposed amendments to IFRS 9 and IFRS 7
Invitation to Comment
Invitation to Comment - Risk Mitigation Accounting: Proposed amendments to IFRS 9 and IFRS 7
The consultation closes on 28 June 2026.
-
1
Initiation
Hide all milestone documentation
The UKEB published its Project Initiation Plan on 13 February 2026.
Project Initiation Plan - Risk Mitigation Accounting: Proposed amendments to IFRS 9 and IFRS 7
Open for Comment
Deadline: 28 June 2026