IASB publish Exposure Draft ED/2025/1 Risk Mitigation Accounting

On 3 December 2025, the IASB have published for comments the Exposure Draft ED/2025/1 “Risk Mitigation Accounting – Proposed Amendments to IFRS 9 and IFRS 7”. This Exposure Draft is open for comments until 31 July 2026.

With this Exposure Draft, the IASB proposes a new accounting model for reflecting strategies to manage (mitigate) net interest rate risk exposures in portfolios. Specifically, the idea is to determine the current interest rate risk exposure and, as far as this risk exposure is actively managed, to reflect in the financial statements the economic effect of this mitigation by means of an accounting option.

The proposed rules are to be integrated into IFRS 9 in the future and supplement the hedge accounting provisions contained therein. At the same time, the remaining hedge accounting provisions in IAS 39, which are optional to date, are to be replaced, thereby finally retiring IAS 39.

The Exposure Draft and accompanying documents as well as further information are available from the IASB’s news item on the IFRS Foundation’s website.