EFRAG recommends adoption on amendments to IAS 39: Cash Flow Hedge Accounting

22 June 2005




The European Financial Reporting Advisory Group (EFRAG) has recommended the adoption of Amendments to IAS 39 Financial Instruments: Recognition and Measurement Cash Flow Hedge Accounting of Forecast Intragroup Transactions. The amendments allow entities to designate in certain circumstances a forecast intragroup transaction denominated in a foreign currency as the hedged item in consolidated financial statements.

EFRAG also supports the transitional provisions of the amendments which reduce certain practical difficulties in adopting these amendments by entities. Furthermore, EFRAG also recommends to endorse these amendments by no later than December 31 2005 to make them applicable to the 2005 financial year.

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