Accounting for electricity derivatives under IAS 39

• Tipo: Artigo em Revista Científica Internacional
• Data: 2007

Autores

Patrícia Teixeira Lopes (Autor) FEP

Revista

Título: Journal of Derivatives & Hedge Funds

Vol. 13 Nº 3

Páginas: 233-246

ISSN: 17539641

Editora: Palgrave Macmillan

Indexação

Business Source Complete (EBSCO)

Classificação Científica

FOS: Ciências sociais > Economia e gestão

CORDIS: Ciências Sociais > Economia > Estudos de gestão > Administração

Outras Informações

DOI: 10.1057/palgrave.jdhf.1850074

Abstract (EN): This paper analyses the impact of accounting rules on the accounting for hedges with energy derivatives in the context of the launch of MIBEL Derivatives Market. Specifically, the key questions of accounting for nonfinancial derivatives raised by IAS 39, following the mandatory adoption of IFRS in Europe, are described. Under certain conditions, IAS 39 allows contracts on commodities to be exempted from its rules. Those conditions are, however, quite strict and require a case-by-case analysis. IAS 39 requires all derivatives to be reported at fair value. Nevertheless, it allows for hedge accounting, provided that certain conditions are met, eliminating undesirable income volatility. Futures contracts pay-off profile is generally the inverse of the underlying item, and so futures tend to be easily qualified for hedge accounting rules of IAS 39, due to the way in which hedge effectiveness is measured. The paper shows that as far as energy producers and users are concerned, when hedges are accomplished with exchange-traded futures, compliance with IAS 39 hedge accounting rules is simple and straightforward.

Idioma: Inglês

Tipo (Avaliação Docente): Científica