IFRS 13 'Fair Value Measurement' came into effect from January 2013. It requires us to take into account counterparty and credit risk, part of non-performance risk, in the revaluation of financial hedging instruments.
Some important questions need to be addressed, such as: How do we calculate this risk? What reports will have to be provided and disclosed? And finally how to simulate the potential impacts on the income statement? If we think only about IFRS 9 we are forgetting this other standard applicable now.
François MasquelierHead of Corporate Finance and Treasury, RTL Group, and Honorary Chairman of the European Association of Corporate Treasurers