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EFRAG issues final endorsement advice on amendments to the interest rate benchmark reform - Phase 2

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

12 Oct 2020

The European Financial Reporting Advisory Group (EFRAG) has issued its final endorsement advice letter relating to the use in the European Union (EU) of 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' (''the Amendments'').

The amendments address issues that might affect financial reporting after the reform of an existing interest rate benchmark, including its replacement with alternative benchmark rates. The amendments are effective for annual periods beginning on or after 1 January 2021, with earlier application permitted.

EFRAG recommends the endorsement of the Amendments. EFRAG’s assessment is that the Amendments meet all the technical endorsement criteria of the IAS Regulation and are conducive to the European public good.

Final endorsement of the amendments is currently expected in the fourth quarter of 2020.

A press release and the endorsement advice letter to the European Commission are available on the EFRAG website. EFRAG has also updated its endorsement status report.

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