IASB consults on IFRS 9 amendments related to IBOR reforms
9 Apr 2020
The International Accounting Standards Board (IASB) is planning to amend three key accounting standards - IFRS 9 Financial Instruments, IFRS 16 Leases and the not yet issued IFRS 17 Insurance Contracts - as a result of proposed interbank lending rate (IBOR) reforms
9 Apr 2020
In its second phase of the reform project, the IASB is addressing issues affecting financial statements when changes are made to contractual cash flows and hedging relationships as a result of interest rate benchmark reform.
The affected standards include IFRS 9 Financial Instruments, IAS 39 Financial Instrument: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures, IFRS 4 Insurance Contracts, and IFRS 16 Leases.
Phase 1 of the project amended IFRS 9 and IAS 39 in September 2019 to provide temporary exceptions to specific hedge accounting requirements and added related disclosure requirements to IFRS 7.
Phase 2 will now consider, as a priority, the effects of the reform on a company’s financial statements that arise when, for example, an interest rate benchmark used to calculate interest on a financial asset is replaced with an alternative benchmark rate.
The deadline for comments on the proposals is 25 May 2020.