Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013 - (Page 12)

ONLIN E www VERSION FOCUS LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE — N°81 — APR / MAY / JUNE 2013 More than 12 years under hedge accounting and IAS 39, for better or for worse? 12 I was recently asked a simple but nevertheless somewhat disconcerting question, «but when everything is considered, after so many years, has IAS 39 and the hedge accounting exception been beneficial for the profession of treasurer or not? IAS 39 has its good and its bad sides. Nevertheless, it has been relatively beneficial to the profession and to world finance. Its successors will be even better in ironing out a number of points that are often criticised by users. Added-Values brought by IAS 39 The good and bad sides of IAS 39 Even though it was resisted for a long time, then debated and each amendment challenged, even if it was listed as one of the reasons for the financial crisis (there was a need to find culprits other than just the ratings agencies which had taken too much of the blame) and even if it is still the most complex standard (IAS/IFRS), IAS 39 has done more good than harm. It paved the way for a complete revision of the approach to managing financial risk and hedging those risks. In particular, it brought more virtue and discipline back into hedging practices in nonfinancial corporations. From Corporate side: RATHER POSITIVE + More Transparency + «Fairer» value of hedges portfolio + More discipline among treasury teams + Less sophistication of OTC peoducts used/simplificaton of strategies + better communication with accounting + Better P&L volatility control + More virtuous behaviors from treasurers + Revisiting of FXpolicies and processes + Better tech (i.e. TMS) inducing pore productivity - Less complecity(although absorbed by expertise and TMS) - More reporting and more disclosures (justified by transparency increase From Banking side: RATHER NEGATIVE - Less profit-generator / high margin products (e.g. «accumulators», «reservoirs», «double barriers structures», etc...) - More advice requested from customers for hedge accounting compliance (while simplification of products has also reduced role of bankers from advisers to price makers/givers) - «Commoditization» of FX/IR products / less sophistication (together with «electronification» of dealing via platforms) and introduction of EUR, which reduced exposures - Less to hedge because of hedge accounting constraints, which as consequences reduces amounts of off-B/S. commitments / Cash Flow hedged

Table des matières de la publication Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013

INTERVIEW - Patrick Siméon and Ibra Wane, Amundi
15 MINUTES WITH - Jörg Wiemer -Treasury Intelligence Solutions - TIS
The Financial Risk Observatory

Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013