The IASB has issued an exposure draft (ED) on Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk, which proposes a "macro hedging" amendment to IAS 39. The ED permits an entity to use fair value hedge accounting for a portfolio hedge of interest rate risk if specific conditions are met. This amendment, which retains the basic principles of IAS 39 while aiming to reduce cost of compliance, was not among the Amendments to IAS 39 that the IASB had proposed earlier in Jul 2002.

The comment deadline for the ED is 14 November 2003. The IASB will issue an amended IAS 39 without the macro hedging proposal by the end of 2003. A second version of IAS 39 revised, reflecting the amendment on macro hedging, is planned for the first quarter of 2004.