The International Accounting Standards Board (IASB) has issued a last-minute exposure draft proposing further amendments to the hedge accounting rules under the new IFRS 9, Financial Instruments.

The body is proposing an urgent amendment, ED/2013/2, Novation of derivatives and continuation of hedge accounting, and has set a 30-day comment period.

The objective is to introduce a narrow scope exception to the requirement for the discontinuation of hedge accounting in IAS 39, Financial Instruments: Recognition and Measurement.

Specifically, it proposes an exception when a derivative designated as a hedging instrument, is 'novated' - or swapped - from one counterparty to a central counterparty (CCP), because of new laws or regulations.

The IASB said the legislative changes were prompted by a G20 commitment to improve transparency and regulatory oversight of over-the-counter derivatives in an internationally consistent and non-discriminatory way.

The ED is available on the IFRS website, click HERE

Comments should be submitted by 2 April 2013.

The implementation date for IFRS 9 is accounting periods beginning on or after 1 January 2015.