Risk Mitigation Accounting | KPMG Business Institute

In December 2025, the IASB published a draft of the new standard (an amendment to IFRS 9). In its currently ongoing comment period, companies have a final opportunity to influence the final form of the standard.

Although RMA replaces the current portfolio-based interest rate risk hedge accounting model in IAS 39, it is not purely an update of fair value hedge accounting. The IASB considers RMA to be a mechanism that will better reflect the economic effect of interest rate risk management, i.e. reducing exposure to interest rate risk.

RMA will only be applicable to portfolios where interest rate risk is managed on a net basis. The accounting treatment will not correspond to either fair value hedging or cash flow hedging but will rather be a combination of both approaches. The effectiveness of hedging will not be tested on its own, but the degree of reduction in the risk indicator monitored by the company, determined on a net basis, will be assessed for individual time baskets.

For all companies, this will be a huge change in the concept of hedge accounting, but for some, the new method will also mean that they will have to reassess their approach to the interaction between risk management, finance and trading, mainly because the new model will only be applicable on a net basis and the old IAS 39 method should cease to exist. Similarly, there are plans to end the possibility of conducting any hedging relationships under IAS 39.

Who are the intended participants?

Finance specialists in companies managing interest rate risk for asset and liability portfolios (banks, insurance companies, corporate institutions).
Risk managers, treasury department employees, etc.
Financial directors and controlling staff.

Programme

Introduction to RMA.
Impact of RMA on risk management.
Presentation of RMA in financial statements.
Problems with RMA application and open issues.
Discussion of possible responses to the proposed standard.

Benefits

By participating in the course, you will:

prepare for a new way of accounting for interest rate risk management in your company
gain an overview of the changes and their impact on your policies, systems and financial statements
contribute to steering your entity towards a functioning model.

Place

KPMG Česká republika, s.r.o., Pobřežní 1a, Praha 8

The fee includes training materials and refreshments. The training will be conducted in Czech.

For attending this training course, you are eligible to gain 4 of CPD points.