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IBOR Reform and the Effects on Financial Reporting – Phase II [ED]

Comment period ends on May 25, 2020

Proposed effective date:

Amendments would be effective for annual periods beginning on or after January 1, 2021 and would be applied retrospectively. Early application would be permitted.

Next steps:

The IASB plans to review the feedback it receives on its Exposure Draft in June 2020 and plans to issue final amendments in Q3/2020

Last updated:

April 2020

Overview

Recent market developments have brought into question the long-term viability of Interbank offered rates (IBORs) and the IASB is currently looking into the potential effects of financial reporting.

The first phase of the project deals with pre-replacement issues (issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark). The first phase of the project culminated with Interest Rate Benchmark Reform, which was published in September 2019.

The second phase of the project deals with replacement issues (issues that might affect financial reporting when an existing interest rate benchmark is replaced).

 

Other Developments

April 2020

On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review the feedback it receives on its Exposure Draft in June 2020.

On April 17, 2020, the AcSB issued its exposure draft that corresponds to the IASB’s Exposure Draft on this topic. Comments are requested by May 25, 2020.

On April 9, 2020, the IASB published an exposure draft Interest Rate Benchmark Reform — Phase 2 (Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) that contains proposed amendments that would address issues that might affect financial reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. Comments are requested by May 25, 2020.

January 2020

On January 31, 2020, the IASB staff updated the Work Plan to indicate that the IASB expects to issue an Exposure Draft in April 2020.

December 2019

On December 13, 2019, the IASB staff updated the Work Plan to indicate that the IASB plans to issue an Exposure Draft in Q2/2020. 

November 2019

On November 25, 2019, the IASB staff updated the Work Plan to indicate that the Board plans to issue an Exposure Draft in the first half of 2020. 

October 2019

On October 1, 2019, the IASB® staff updated the work plan to indicate that the Board expects to issue an Exposure Draft (no date specified).

August 2019

On August 15, 2019, the International Accounting Standards Board (the Board) added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—IBOR reform.

 

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