IBOR reform and the effects on financial reporting — Phase 2



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 2 of the project.


Current status of the project

This project has been completed. The IASB issued Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) on 27 August 2020.


Project milestones

Date Development Comments
August 2019 Project added to the work plan of the IASB
9 April 2020 ED/2020/1 Interest Rate Benchmark Reform — Phase 2 (Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) published Comments requested by 25 May 2020
27 August 2020 Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) issued amendments are effective for annual reporting periods beginning on or after 1 January 2021


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