Why the use of options as hedging instruments is more appealing under AASB 9

The December 2015 Chartered Accountants Australia & New Zealand’s Acuity magazine featured an article in their Perspective Series by Judith Leung, CA, senior manager at BDO called ‘Why the use of options as hedging instruments is more appealing under AASB 9’ .

The good news is that the movement in the time value component of the fair value of an option, previously recognised in profit or loss under AASB 139 Financial Instruments: Recognition and Measurement, is recorded in other comprehensive income (OCI) under AASB 9 Financial Instruments.