Views on improving the integrity of global capital markets
22 February 2013

Derivatives Counterparty Risk: Impact of New IFRS Fair Value Requirements


During the financial crisis — and the bankruptcy of Lehman Brothers and the near-meltdown of insurance behemoth AIG — derivatives counterparty credit risk (CCR) was increasingly recognised as a key risk category and a source of systemic risk. Despite the systemic risk implications of derivatives-related CCR, there is often inadequate disclosure around this key risk category.

In a recently published issue brief, CFA Institute examines the impact of IFRS 13 Fair Value Measurement on the reporting of derivatives counterparty risk, including highlights of areas where information deficiencies currently exist and how IFRS 13 may improve transparency around CCR.

About the Author(s)
Vincent Papa, PhD, CPA, FSA, CFA

Vincent Papa, PhD, CPA, FSA Credential, CFA, was the director of financial reporting policy at CFA Institute. He was responsible for representing the interests of CFA Institute on financial reporting and on wider corporate reporting developments to major accounting standard setting bodies, enhanced reporting initiatives, and key stakeholders. He is a member of ESMA’s consultative working group for the Corporate Reporting Standing Committee, EFRAG user panel, and a former member of the IFRS Advisory Council, Capital Markets Advisory Committee, and Financial Stability Board Enhanced Disclosure Task Force. Prior to joining CFA Institute, he served in investment analysis, management consulting, and auditing roles.

3 thoughts on “Derivatives Counterparty Risk: Impact of New IFRS Fair Value Requirements”

  1. Good morning Mister Papa
    We thank you very much for your exciting article about hedging instruments. We are looking forward to publish your article on our blog site.

    We are also interested in following topics:
    – functioning of hedging instruments
    – description of different kinds of risks (fair value hedge accounting, cash flow hedges, net investment hedges) and display these risks in IFRS

    Would you be interested in providing us some of your insights on the topics mentioned above?

    Kind regards

    Stefan Schmid

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  3. restylane buy says:

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