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IBOR reform and the effects on financial reporting, especially on financial instruments

 

Background

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.

 

Current status of the project

The IASB first discussed this issue in June as a research project 2018. The project was moved to the standard-setting agenda in December 2018. An exposure draft with a first set of proposed amendments was published on 3 May 2019 with comments requested by 17 June 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

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.