30 September 2026To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB REQUEST FOR INFORMATIONPost-implementation Review of IFRS 9 and IFRS 7– Hedge Accounting RequirementsComments to be received by 1 December 2026The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Request for Information (RFI) Post-implementation Review (PIR) of IFRS 9 FinancialInstruments and IFRS 7 Financial Instruments: Disclosures – Hedge Accounting Requirements.The RFI is available on the Institute's website.The IASB is undertaking a PIR of the hedge accounting requirements in IFRS 9 and the relateddisclosure requirements in IFRS 7. A PIR is an important part of the IASB’s due process, helping theIASB assess whether the new requirements are broadly working as intended for users of financialstatements, preparers, auditors and regulators after a few years of implementation. This review willcomplete the IASB’s PIR of IFRS 9, following its earlier reviews of the classification and measurementas well as impairment requirements completed in December 2022 and July 2024, respectively.Hedge accounting aims to reflect in financial statements the effects of an entity’s risk managementactivities that use financial instruments to manage particular risk exposures. While IFRS 9 retains thethree types of hedge relationships (cash flow hedge, fair value hedge and hedge of a net investmentin a foreign operation) as well as the hedge accounting mechanics of IAS 39 Financial Instruments:
Recognition and Measurement, it introduced other changes intended to better align hedge accountingwith an entity’s risk management activities. The disclosure requirements in IFRS 7 were alsoamended to enable users to better understand an entity’s risk management activities and the effectsof hedge accounting on the financial statements.The RFI seeks feedback on the overall assessment of the hedge accounting requirements in IFRS 9and the related disclosure requirements in IFRS 7. In particular, the IASB is seeking views on:
•whether the requirements meet their objectives;
•whether the overall initial and ongoing costs of applying the requirements, and auditing andenforcing their application, are largely as the IASB expected;
•whether the overall benefits to users of information resulting from entities applying therequirements are largely as the IASB expected; and•whether there are any other matters the IASB should consider.The review of IFRS 7 is relevant to all entities applying hedge accounting because its disclosurerequirements apply regardless of whether an entity applies the hedge accounting requirements inIFRS 9 or continues to apply those in IAS 39.The IASB intends to withdraw IAS 39, with the timing and manner dependent on the progress ofits Risk Mitigation Accounting project. Respondents may also share their views on the proposedwithdrawal of IAS 39, including the timing of withdrawal and transition requirements associatedwith applying the hedge accounting requirements in IFRS 9 when responding to this RFI.Impact on entities in Hong KongUnder IFRS 9 (HKFRS 9 equivalent), hedge accounting is voluntary. Accordingly, entities in HongKong need to assess the costs and benefits when deciding whether to apply hedge accounting. Theimpact of the hedge accounting requirements varies across both financial and non-financial sectors,depending on factors such as the volume and materiality of relevant transactions and the types ofhedging relationships. In addition, the related disclosure requirements in IFRS 7 affect users offinancial statements by providing information about an entity’s risk management activities and howthose activities affect the financial statements.The RFI provides a valuable opportunity for stakeholders to provide feedback based on theirexperiences. The feedback provided may lead to further actions by the IASB, which could includestandard-setting, referring a matter to the IFRS Interpretations Committee, or developing materials tosupport consistent application of the requirements. Depending on these actions, entities may befurther impacted.How to submit commentsThe FRSC invites your comments on the RFI by 1 December 2026 to allow your comments to beconsidered in developing its response to the IASB. Comments should be supported by specificreasoning and submitted in written form by email to commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.
Invitation to comment on the IASB Request for Information Post-implementation Review of IFRS 9 and IFRS 7 Hedge Accounting Requirements
下载原件30 September 2026To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB REQUEST FOR INFORMATIONPost-implementation Review of IFRS 9 and IFRS 7– Hedge Accounting RequirementsComments to be received by 1 December 2026The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Request for Information (RFI) Post-implementation Review (PIR) of IFRS 9 FinancialInstruments and IFRS 7 Financial Instruments: Disclosures – Hedge Accounting Requirements.The RFI is available on the Institute's website.The IASB is undertaking a PIR of the hedge accounting requirements in IFRS 9 and the relateddisclosure requirements in IFRS 7. A PIR is an important part of the IASB’s due process, helping theIASB assess whether the new requirements are broadly working as intended for users of financialstatements, preparers, auditors and regulators after a few years of implementation. This review willcomplete the IASB’s PIR of IFRS 9, following its earlier reviews of the classification and measurementas well as impairment requirements completed in December 2022 and July 2024, respectively.Hedge accounting aims to reflect in financial statements the effects of an entity’s risk managementactivities that use financial instruments to manage particular risk exposures. While IFRS 9 retains thethree types of hedge relationships (cash flow hedge, fair value hedge and hedge of a net investmentin a foreign operation) as well as the hedge accounting mechanics of IAS 39 Financial Instruments:
Recognition and Measurement, it introduced other changes intended to better align hedge accountingwith an entity’s risk management activities. The disclosure requirements in IFRS 7 were alsoamended to enable users to better understand an entity’s risk management activities and the effectsof hedge accounting on the financial statements.The RFI seeks feedback on the overall assessment of the hedge accounting requirements in IFRS 9and the related disclosure requirements in IFRS 7. In particular, the IASB is seeking views on:
•whether the requirements meet their objectives;
•whether the overall initial and ongoing costs of applying the requirements, and auditing andenforcing their application, are largely as the IASB expected;
•whether the overall benefits to users of information resulting from entities applying therequirements are largely as the IASB expected; and•whether there are any other matters the IASB should consider.The review of IFRS 7 is relevant to all entities applying hedge accounting because its disclosurerequirements apply regardless of whether an entity applies the hedge accounting requirements inIFRS 9 or continues to apply those in IAS 39.The IASB intends to withdraw IAS 39, with the timing and manner dependent on the progress ofits Risk Mitigation Accounting project. Respondents may also share their views on the proposedwithdrawal of IAS 39, including the timing of withdrawal and transition requirements associatedwith applying the hedge accounting requirements in IFRS 9 when responding to this RFI.Impact on entities in Hong KongUnder IFRS 9 (HKFRS 9 equivalent), hedge accounting is voluntary. Accordingly, entities in HongKong need to assess the costs and benefits when deciding whether to apply hedge accounting. Theimpact of the hedge accounting requirements varies across both financial and non-financial sectors,depending on factors such as the volume and materiality of relevant transactions and the types ofhedging relationships. In addition, the related disclosure requirements in IFRS 7 affect users offinancial statements by providing information about an entity’s risk management activities and howthose activities affect the financial statements.The RFI provides a valuable opportunity for stakeholders to provide feedback based on theirexperiences. The feedback provided may lead to further actions by the IASB, which could includestandard-setting, referring a matter to the IFRS Interpretations Committee, or developing materials tosupport consistent application of the requirements. Depending on these actions, entities may befurther impacted.How to submit commentsThe FRSC invites your comments on the RFI by 1 December 2026 to allow your comments to beconsidered in developing its response to the IASB. Comments should be supported by specificreasoning and submitted in written form by email to commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.