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Hedge accounting under IFRS 39 or FAS 133, with future iterations, has created issues for many companies as they seek to balance the risk management needs of the business with the requirements for hedge accounting treatment.

In this article, Morton Buchgreitz, SVP and Group Treasurer of DONG Energy discusses how the company made the decision to abandon hedge accounting in favour of a hedging strategy that was more closely aligned to the needs of the business, and income reporting that better reflected actual business performance.

Key Points

• Risk profile
• Approach to hedging
• Reassessing business performance reporting
• Managing expectations
• Impact and outcomes

Written by

Morton Buchgreitz
Senoir Vice President and Group Treasurer
DONG Energy