We broadly support and agree with IASB’s proposals in the ED except for the following concerns:
- need for expedition of the Board’s work relating to phase two
- principle on when to cease the application of reliefs is unclear
- lack of clarity on what entities should do in the event of a failure of retrospective assessment due to mismatch between the hedged item and the hedging instrument
- limited circumstances for retrospective application of proposed amendments
- potential risk of having to terminate hedging relationships due to inability to complete hedge documentation in a timely manner
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