Why the numbers don’t add up for post-Libor hedge accounting

Experts raise concerns over IASB’s Phase II plans to move on from Libor

Preparations for moving financial contracts from Libor to alternative risk-free rates have kept the bean counters busy.

Global accounting rule-makers are in the midst of a two-phase mission to help financial firms adjust their accounting treatment of loans, bonds and derivatives. The second phase of guidance is expected later this year, but market participants are complaining that the proposals are unclear and leave too much scope for misinterpretation.

There are a few areas of confusion, not