CBA follows peers on hedging profits and losses

Ian Rogers
Commonwealth Bank yesterday created a minor flap in the market over plans for an investor briefing this morning that will explain the rationale for a change in its treatment of unrealised losses and gains on derivatives used for hedging.

CBA used to report these gains through the profit and loss, or at least did so following the introduction of new accounting standards a couple of years ago.

The bank's peers mostly don't, however, and the accounting standards leave room for interpretation. And now CBA won't do so either.

CBA is due to report its December 2007 half-year profit next Wednesday.