BC74 The Board considered practical implementation difficulties that could arise from the retrospective application of aspects of IAS 39: [IFRS 9 Financial Instruments replaced IAS 39. IFRS 9 applies to all items that were previously within the scope of IAS 39.]
(a) hedge accounting (paragraphs BC75–BC80);
(b) government loans (paragraphs BC80A–BC80E);
(c) the treatment of cumulative fair value changes on available‑for‑sale financial assets [IFRS 9 Financial Instruments eliminated the category of available-for-sale financial assets.] at the date of transition to IFRSs (paragraphs BC81–BC83); and
(d) ‘day 1’ gain or loss recognition (paragraph BC83A).
Hedge accounting [IFRS 9 Financial Instruments replaced the hedge accounting requirements in IAS 39.]
BC75 Before beginning their preparations for adopting IAS 39 (or a local standard based on IAS 39), it is unlikely that most entities would have adopted IAS 39’s criteria for (a) documenting hedges at their inception and (b
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