IASB to Issue Final Phase 2 Benchmark Reform Amendments in August 2020
At the July meeting, IASB decided to issue final amendments to Phase 2 of the IASB project on interest rate benchmark reforms in August 2020. The participants discussed the feedback received on the exposure draft on the Phase 2 of the interest rate benchmark reforms. The proposal had addressed the associated amendments to the IFRS 7 on disclosures of financial instruments, the IFRS 4 on insurance contracts, the IFRS 16 on leases, and the IAS 39 and IFRS 9, which are the old and new standards on financial instruments, respectively.
At its meeting, the Board agreed that the amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 should not be re-exposed. The Board members confirmed that they were satisfied that the Board has complied with applicable due process steps and that it has undertaken sufficient consultation and analysis to begin the balloting process for the amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16. The Board tentatively decided to:
- Permit, rather than require, an entity to reset cumulative fair values to zero for performing the retrospective effectiveness assessment, as proposed in paragraph 102S of the exposure draft
- Confirm the remaining proposals in the exposure draft related to the accounting for qualifying hedging relationships
Keywords: International, Accounting, Banking, Insurance, Securities, IBOR, Interest Rate Benchmarks, Financial Instruments, IFRS 9, IAS 39, Hedging, Disclosures, Insurance Contracts, IASB
Featured Experts
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Dieter Van der Stock
IFRS subject matter expert; LDTI subject matter expert; accounting authority; risk management specialist
Previous Article
IAIS Requests Feedback on Impact of COVID-19 on Insurance SectorRelated Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
