Banks hopeful of derivatives deal with IASB

Link: IASB offers olive branch to banks

A framework for a potential deal was arranged when senior executives from Barclays, BNP Paribas, Commerzbank and HSBC met the IASB in Rome on Wednesday and further talks are expected to take place next week, according to the Financial Times. The banks had been concerned that the new rules would stop them using derivatives for hedge accounting practices.

However it is understood that some French banks may object to the deal as they are still opposed to the principle that derivatives must be recorded at fair value on the balance sheet.

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