Commission Regulation (EU) No 1375/2013 of 19 December 2013

The Commission Regulation (EU) No 1375/2013 of 19 December 2013, published in the Official Journal of the European Union L 346 on 20 December 2013, adopts Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39 Financial Instruments: Recognition and Measurement).

The objective of the amendments is to provide relief in situations where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations. Such a relief means that hedge accounting can continue irrespective of the novation which, without the amendment, would not be permitted.

Each company shall apply the amendments, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2014