At its meeting on February 26, 2020, the IASB met to discuss issues related to the reform of interest rate benchmarks in Phase II, namely:

1. a sweep issue relating to a tentative decision the Board made at its October 2019 meeting on what constitutes a modification of a financial instrument;
2. when the exception provided in Phase 1 relating to the requirement in IFRS 9 and IAS 39 for a non-contractually specified risk component to be separately identifiable, should cease to apply. The Board also discussed whether to provide an exception from the requirement in Phase 2;
3. whether the proposed amendments should be applied voluntarily or mandatorily and when the proposed amendments should cease to apply;
4. the proposed effective date and transition requirements for the Board’s tentative decisions in Phase 2; and
5. the applicable due process requirements including the proposed comment period and the Board’s permission to begin the process for balloting an exposure draft for Phase 2 of the project.

The Board made tentative decisions in respect of each of these items, including that entities should apply the proposed amendments for annual periods beginning on or after January 1, 2021, with earlier application permitted and that the proposed amendments in Phase 2 should apply retrospectively. The Board plans to issue an Exposure Draft in April 2020.

Review the IASB Update and podcast on the Board's Web site.