IASB amends IFRS in response to IBOR Reform
02 October 2019
On 26 September 2019, the IASB amended IAS 39, IFRS 9 and IFRS 7 in response to uncertainty arising from the phasing out of interest-rate benchmarks such as interbank offered rates (IBORs). These amendments are mandatorily effective as 1 January 2020, with earlier application permitted.
The amendments modify the requirements relating to hedge accounting in order to provide relief from potential consequences of IBOR reform. Additionally, the standards were amended to require additional disclosures explaining how an entity’s hedging relationships are affected by the uncertainties involving IBOR reform.
These amendments are ‘phase 1’ in the IASB’s project relating to IBOR reform. The IASB is currently working on phase 2, which will consider further implications on financial reporting.
More information on the amendments can be accessed here.