Accounting for initial margin under IFRS13: Accounting for initial margin under IFRS13

Initial margin (IM) is required by central counterparties and regulations. Chris Kenyon and Richard Kenyon provide an analysis of International Financial Reporting Standard 13, which indicates margin valuation adjustments should be reflected in fair value since exiting affected trades requires the acquiring institution to face the same cost drivers from IM. Furthermore, these project costs contractually resemble the credit support annex costs routinely included in