International Accounting Standards Board (IASB) hedging rules that are scheduled to be implemented in the first six months of the year have been designed to encourage firms to re-examine their current risk management practices. ” align=”right”>New International Accounting Standards Board (IASB) hedging rules that are scheduled to be implemented in the first six months of the year have been designed to encourage firms to re-examine their current risk management practices.

Hedging took more priority after the financial crisis of 2008, and risk management practices related to counterparties in transactions, commodities and currencies have all been impacted by the event, according to The Business Times.

Companies are currently coping with another wave of fear being caused by uncertainty surrounding the euro zone debt crisis, the media outlet reports. The new rules set forth by IASB will impact all firms that engage in hedging practices.

Many accountants have found the rules surrounding hedging practices to be challenging, and the new rules set forth by the regulatory body are designed to simplify the accounting practices related to hedging, according to the media outlet.
The IASB recently decided to delay the implementation of the International Financial Reporting Standards 9 to 2015, according to Accountancy Age. The organization indicated that postponing the adoption of the new rules from 2013 will allow it to consider what rules will be the best for intricate processes such as hedge accounting, GFS News reports.