EFRAG released draft comment on IASB Exposure Draft

Released 13 May 2019

EFRAG opens draft comment letter to constituents’ for comment on proposed Interest Rate Benchmark Reforms for IFRS9 and IAS 39.

The European Financial Reporting Advisory Group (EFRAG) has published its draft comment letter in response to Exposure Draft ED/2019/1 Interest Rate Benchmark Reform (proposed amendments to IFRS 9 and IAS 39), from the International Accounting Standards Board.

The IASB consultation covers two phases, firstly the interest rate benchmark reforms and modification to hedge accounting, which are covered in this exposure draft. The second phase, which has not yet commenced, will focus on replacement issues. The EFRAG view is that the current proposals in phase one are ‘appropriately handling the uncertainty’, and only focuses on the hedge accounting requirements. The Group goes on to urge the IASB to begin phase two ‘as soon as possible’ and gives some fact patterns, with the aim of identifying potential issues.

The EFRAG consultation closes by 31 May 2019, which gives it time to collate its feedback to provide ahead of the IASB deadline of 17 June 2019.

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