Accounting is lead by specific rules and measures that are predetermined by a set of rules like the International Accounting Standards (IAS 39). According to Ernest & Young Company, classification of the various hedges undertaken by the company is a challenge because of the need to satisfy almost all of the procedures involved. To begin with, the similarity of the various activities must be considered, their level of risk exposure, the variation in the financial value that might take place later and others. As a result, some of the hedged items are not classified together in spite of their similar economic connections due to this shortcoming they suggested that this part of the rules should be revised. Furthermore, Ernest & Young Company suggested a review on policies pertaining to financial reporting and an entity’s risk management. For example, in the banking industry, the management of the deposits on demand is complicated by the variation of policies imposed between risk management, and hedge accounting which is dictated by IAS39 requirements. In this case, risk management treats the deposits on demand based on their anticipated withdrawal time and tendencies. On the other hand, hedge accounting based on IAS 39 requires that such deposits should not be treated with a fair value that is less than the amount to be claimed by the customer (Earnest and Young Company, 2010). According to Fernbach Company, a firm manufacturing risk management software for banks, they suggested that a discontinuation of a hedge relationship should be effected when the hedge relationship does not comply with the set standards. This should be put in place to minimize on the wastage of time in amending non qualifying hedging practices and techniques. In addition to that, where the hedging ratio is used, in specific cases a rebalancing of the ratio should be done to maintain the risk management objective (Young, 2011). They further suggested that the hedging instruments to include both derivatives and non-derivative hedging techniques. Lastly, the company emphasized the need for the entry of losses or gains as a result of the hedging transactions entered by firms to be recorded in a separate balance sheet line. According to the suggestions put across by Deloitte Company, they proposed a policy for the provision for amortization and depreciation on probable losses that may occur during credit transactions. To begin with, they suggest an earlier provision for the losses that may be due to default or otherwise in the future of loans and other related financial assets (Mosqualier, 2011). In a proposal by the KPMG bank of Singapore, they suggested for the postponement of the deadline for implementation of International Financial reporting standards (IFRS9) to 2015 to allow for more lead time. There are also proposals for clarification on exceptions to the hedging rules from other parties like the investment entities. However, the exceptions were seen to be a source of controversy as more firms would unnecessarily seek consolidation. Besides, it is expected that the offsetting requirements of IFRS9 may not have any impacts on the consolidated banks since the Basel III proposal brings in the regulations from th