IBOR Reform – Not-for-Profit Advisory Committee
Date recorded:
At its meeting on June 22, 2021, Not-for-Profit Advisory Committee discussed the proposals to include in an Exposure Draft to amend Section 3856, Financial Instruments, addressing issues related to debt modification and hedge accounting resulting from IBOR reform. The Committee advised the AcSB that the proposed amendments should:
- provide optional relief for debt modifications directly related to IBOR reform, allowing entities to account for these modifications as a continuation of the existing contract rather than an extinguishment; and
- allow entities to update their hedge documentation to reflect changes resulting from IBOR reform without discontinuing hedge accounting.
Review the summary of discussions on the AcSB's Web site.