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EFRAG issues draft endorsement advice on amendments to the interest rate benchmark reform

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

02 Oct 2019

The European Financial Reporting Advisory Group (EFRAG) has issued a draft endorsement advice letter and a separate invitation to comment relating to the use in the European Union (EU) of Interest Rate Benchmark Reform (amendments to IFRS 9, IAS 39 and IFRS 7) (“the Amendments”).

The amendments deal with issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark with an alternative interest rate and address the implications for specific hedge accounting requirements in IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement, which require forward-looking analysis. There are also amendments to IFRS 7 Financial Instruments: Disclosures regarding additional disclosures around uncertainty arising from the interest rate benchmark reform.

EFRAG recommends the endorsement of the Amendments. EFRAG’s initial assessment is that the Amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.

Comments are requested by 10 October 2019.

For more information, see the press release, draft endorsement advice letter and the invitation to comment on the EFRAG’s website.  EFRAG has also updated its endorsement status report which is available here.

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