On 3 May 2019 the International Accounting Standards Board (IASB) published an Exposure Draft, Interest Rate Benchmark Reform, Proposed amendments to IFRS 9 and IAS 39 (the ED). Comments are to be received by 17 June 2019, which is forty-five days after publication of the ED. This is a shorter comment period than normal for an exposure draft, reflecting the urgency of the topic.
The ED presents for comment the decisions taken by the IASB to date as part of its project responding to the effects of Interbank Offered Rates (IBOR) reform on financial reporting. The IASB has divided the project into two phases:
The ED is the next key step in phase one of the IASB’s project and contains the proposed amendments to IFRS 9 Financial instruments and IAS 39 Financial Instruments: Recognition and Measurement, following the tentative decisions reached by the IASB at the meetings in February and March 2019.
In our IFRS Developments 144 and 145, we summarised the tentative decisions taken at these meetings and provided some background to the IBOR reforms.
The IASB has not yet started to consider the issues arising from phase two of its project. Click below to read EY’s summary of the proposals in the ED and our preliminary views.