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
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