IAS 21: hedging currency in a Brexit world

Foreign exchange volatility is one of the most worrying factors in the run-up to Brexit. Armaghan Haq of Lloyds Banking Group examines the implications of a volatile sterling and possible remedial action under IAS 21 accounting requirements

Since the yes vote in the referendum last June, foreign exchange (FX) rates have become extremely volatile. Such volatility may significantly affect the results and financial position of many UK companies with international operations and multinationals that operate in the UK. This article addresses some of the accounting treatments available to manage this volatility.

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