IBOR reform and the effects on financial reporting — Phase 1



Interbank offered rates (IBORs) are interest reference rates, such as LIBOR, EURIBOR and TIBOR, that represent the cost of obtaining unsecured funding, in a particular combination of currency and maturity and in a particular interbank term lending market.

Recent market developments have brought into question the long-term viability of those benchmarks. The objective of this project is to monitor further developments in this regard and determine whether there are any implications for the existing accounting requirements and whether that the Board might want to take any actions.

The focus of the project is currently on financial instruments although an IBOR reform would later definitely also have impact on any standard dealing with discounting.

The project is split into two phases: Phase 1 deals with pre-replacement issues (issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark); and Phase 2 deals with replacement issues (issues that might affect financial reporting when an existing interest rate benchmark is replaced).

This page is dedicated to phase 1 of the project.


Current status of the project

This project has been completed. The IASB issued Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) on 26 September 2019.


Project milestones

Date Development Comments
June 2018 Issue first discussed by the IASB; project added to the research agenda of the IASB
December 2018 Project moved to the standard-setting agenda of the IASB
3 May 2019 ED/2019/1 Interest Rate Benchmark Reform (Proposed amendments to IFRS 9 and IAS 39) published Comments requested by 17 June 2019
26 September 2019 Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) issued amendments are effective for annual reporting periods beginning on or after 1 January 2020


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