Of hedges and cacao beans : Supreme Court ruling on hedge accounting for tax purposes

Journal
Netherlands
Finance and Capital Markets (formerly Derivatives & Financial Instruments) 2009 (Volume 11), No. 5
The Dutch Supreme Court recently issued a ruling in the Cacao beans case, which concerned the accounting treatment for tax purposes of certain hedge contracts. In addition to an analysis of this significant case, the authors provide a brief introduction to the basic principles of Dutch tax accounting. The relevant case law in this respect and the basic rules for hedge accounting under International Financial Reporting Standards are also considered.