The International Accounting Standards Board (Board) has finalised its response to the ongoing reform of inter-bank offered rates (IBOR) and other interest rate benchmarks by issuing a package of amendments to IFRS Standards. The amendments are aimed at helping companies to provide investors with useful information about the effects of the reform on those companies’ financial statements.
The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform.
The amendments in this final phase relate to:
Hans Hoogervorst, Chair of the Board, said:
Our response to IBOR reform helps companies deal with its effect on their financial instruments and enables them to continue providing useful information to investors.
These amendments are effective for annual reporting periods beginning on or after 1 January 2021, with early adoption permitted.
Access the unaccompanied version of Interest Rate Benchmark Reform—Phase 2, which amends IFRS 9 Financial Instruments; IAS 39 Financial Instruments: Recognition and Measurement; IFRS 7 Financial Instruments: Disclosures; IFRS 4 Insurance Contracts and IFRS 16 Leases. (Basic subscription required).
Access the complete package of issued documents, which includes the Basis for Conclusions. (Premium subscription required).
A project summary, providing further information about the Board’s work in relation to interest rate benchmark reform, is also available.
The Board has also today published proposals to update the IFRS Taxonomy to reflect the disclosure requirements included in the amendments. The Proposed IFRS Taxonomy Update can be accessed here. The deadline for submitting comments is 28 September 2020.