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Fixed Income Portfolio manager 

January 26, 2015

David Wiggins, Bloomberg

Companies that prepare their annual accounts under International Financial Reporting Standards have been required since Jan. 1, 2013, to adhere to new rules. One of them is IFRS 13, which focuses on fair-value measurement and particularly affects accounting for over-the-counter derivatives.

IFRS 13 requires a full consideration of nonperformance risk--the risk that counterparties may not be able to fulfill their contractual obligations. Auditors now expect clients to consider whether a fair-value adjustment for credit risk is required on their OTC derivatives transactions and whether they need to invest in systems and processes to estimate the risk. You can use the Multi Asset Risk System (MARS) function to help meet this requirement.

Read More: Bloomberg

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