Hello all,

We have several positions of ‘commodity storages’ in our portfolio (oil storage tanks, underground gas storages, coal reserves…). These storages are considered as assets and are valued at a typical average winter/summer commodity spread (buy summer, sell winter). The complete portfolio is accounted using the “accrual” method. Within the trading business these spreads are also referred to as intrinsic value of a storage.

We are considering trading positions on these assets in the future… This implies that traders should be possible to take daily ’speculative’ positions on assets assigned in our physical ‘accrual’ portfolio. Doing so, they can benefit from the liquidity seen on the summer/winter spreads, capturing extrinsic value from the market. Contrary, our trading positions are accounted using the “mark-to-market” accounting method.

I am searching for some guidance within the IFRS rules:  How can I assign my accrual accounted locked portfolio assets for daily trading purposes (mark-t0-market accoutning)?  

Thank you for your appreciated inputs,

Best Regards,

Bert

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