 Hedge Accounting During the Negative Interest Rate Environment by Insurance CompaniesZdeněk Rybák ()
A chapter in Global Versus Local Perspectives on Finance and Accounting, 2019, pp 11-31 from Springer Abstract: Abstract The aim of this paper is to express hedging of interest rate risk and its problems with consequences in using of hedge accounting under accounting standard IAS 39 by insurance company. This paper focuses especially on hedge accounting problem connected with long duration of negative market interest rates. At first, the paper focuses on market risks and in detail on explanation of the interest rate risk. Then paper focuses on hedge accounting under IAS 39 and its principles generally. Then paper focuses on the efficiency testing of the interest rate gap by cash flow hedging and its problem during long duration of negative market interest rates. Efficiency testing is showed on practical example of hedging interest rate gap of the insurance company in the period of negative interest rates. This paper focuses on assessment of hedging efficiency and abstract away from inefficiency calculation. Keywords: Insurance; Interest rate risk; Hedge accounting (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-11851-8_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-11851-8_2 Access Statistics for this chapter More chapters in Springer Proceedings in Business and Economics from Springer |
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