IBOR reform: publication of phase 1 amendments, commencement of phase 2

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EY Global IFRS

27 Sep 2019 PDF

The IASB has issued IBOR Reform, Amendments to IFRS 9, IAS 39 and IFRS 7, in response to the effects of IBOR reform on financial reporting.

The IASB is focusing on phase two of its project to deal with potential issues when the existing interest rate benchmark is replaced with an RFR. The IASB’s amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark with an alternative nearly risk-free interest rate (an RFR).