The International Accounting Standards Board (IASB) has finalised its response to the ongoing reform of inter-bank offered rates (IBOR) and other interest rate benchmarks by issuing a package of amendments to IFRS Standards. The amendments are aimed at helping companies to provide investors with useful information about the effects of the reform on those companies’ financial statements.
The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform.
The amendments in this final phase relate to:
Hans Hoogervorst, Chair of the IASB, said:
“Our response to IBOR reform helps companies deal with its effect on their financial instruments and enables them to continue providing useful information to investors.”
These amendments are effective for annual reporting periods beginning on or after 1 January 2021, with early adoption permitted.
The IASB’s Press Release can be accessed at www.ifrs.org
27 August 2020