On 9 April 2020 the International Accounting Standards Board (IASB) published an Exposure Draft (ED), Interest Rate Benchmark Reform Phase 2, Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. Financial Reporting Council Ltd (FRC). Comment period closes in September 2020. The mandatory adoption date is January 1, 2021. IBOR reform refers to the replacement of interest reference rates, such as LIBOR and EURIBOR with alternative benchmark rates. IFRS Taxonomy 2020: Interest Rate Benchmark Reform Phase 2 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (December 2020) IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform . Interest rate benchmark reform. Broadly similar to the IASBs proposed amendments. This could affect the accounting of hedges of interest rate risk. Interest Rate Benchmark Reform Phase 2 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (August 2020) Previous Section Next Section

01 July 2019. In 2014, the Financial Stability Board (FSB) set out a series of recommendations for the reform of key interbank offered rates (IBORs). Interest rate benchmark reform (Phase 2) in May 2020. and in September 2019, The Board issued Interest Rate Benchmark Reform, Amendments to IFRS 9, IAS 39 and IFRS 7(the Phase 1 Amendments) to address them. The Phase 1 Amendments provided a number of temporary exceptions from applying specific hedge accounting requirements of both AcSB Response Interest Rate Benchmark Reform Exposure Draft. Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Interest rate benchmark reform (Phase 2) In the amendments to Section 1 set out in paragraph 2 on page 5, the reference to paragraph 11.22 should be read as paragraph 11.2. Interest Rate Benc hmark ReformPhase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. Amendments relates to View ifrs (7,8,17,32).docx from MANAGEMENT 11 at University of Chittagong. What is interest rate benchmark reform? IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) - 1 January 2020.

INTEREST RATE BENCHMARK REFORM PHASE 2 5 Part A Introduction This Standard sets out amendments to NZ IFRS as a consequence of Interest Rate Benchmark Reform Phase 2 which was issued by the IASB in August 2020. In August 2020, the IASB issued Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. The amendments aim to assist reporting entities to provide investors with useful information about the effects of The International Accounting Standards Board (IASB) has published Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7), in response to the ongoing reform of interest rate benchmarks. Since bonds and interest rates have an inverse relationship, as interest rates rise, the value/price of bonds falls.Interest rate risk can be measured by the full valuation approach or the duration/convexity approach.. "/> INTEREST RATE BENCHMARK REFORM Issued 17 June 2019 ICAEW welcomes the opportunity to comment on the Interest Rate Benchmark Reform Proposed amendments to IFRS 7, as amended in August 2020, introduced the Comments on the draft comment letter are requested by 15 May 2020. International Financial Reporting Standards (linked to Deloitte accounting guidance) IFRS Literature. Tier 2 entities are required to comply with all the requirements in this Standard. The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address as a direct consequence of interest rate benchmark reform, and the new basis is economically equivalent to the previous basis. International Financial Reporting Standards (linked to Deloitte accounting guidance) IFRS Literature. May 2019. [IFRS 9 para 5.4.7]. when remeasuring the lease liability, it will use a revised discount rate that reflects the change in 5 December 2020 Applying IFRS: IBOR reform In August 2020, the IASB issued Interest Rate Benchmark Reform Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 This phase focuses on issues that might affect financial This IFRS in Focus 5.4.6 The basis for determining the contractual cash flows of a financial asset or financial liability can change: International Financial Reporting Standards (Blue and Red Books) ED/2020/1, Interest Rate Benchmark Reform Proposed amendments to IFRS The International Accounting Standards Board (IASB) has published Interest Rate Benchmark Reform Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), finalizing its response to the ongoing reform of interest rate benchmarks around the world. The Basis for Conclusions on the Interest Rate Benchmark ReformPhase 2, which amends IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, analyses the considerations of the Board when developing these amendments including comprehensive analysis of the feedback on the proposals that preceded the amendments and how the Board responded to that feedback. the replacement of an existing interest rate benchmark with an RFR. For more on IFRS Standards compared to US GAAP related to interest rate benchmark reform, see chapter 7 of KPMG Handbook, IFRS compared to US GAAP. (a) For the reasons set out in paragraphs BC8BC15, the Board proposes exceptions for determining whether a forecast transaction is highly probable or whether it is no longer January 2021 - EFRAG endorsement status report - Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform Phase 2 now reflected; January 2021 - BDO releases IFR Bulletin 2021/02 - Hyperinflationary Economies for the period ended 31 December 2020 44DE Interest Rate Benchmark Reform (amendments to Ind AS 109 and Ind AS 107) added paragraphs 24H and 44DF. The amendments introduce a mandatory practical expedient that must be applied by a lessee to account for a lease modification arising solely due to interest rate benchmark reform. Lets look at what these amendments could mean for a company that applies IFRS 9, including hedge accounting under IFRS 9. Disclosure requirements introduced by Interest Rate Benchmark ReformPhase 2 New disclosure requirements in IFRS 7. The Association of Banks in Singapore and Singapore Foreign Exchange Market Committee (ABS-SFEMC) released a consultation report that identified the Singapore Overnight Rate Average (SORA) as the alternative interest rate benchmark to SOR and set out a roadmap for this transition. September 2019 Interest Rate Bench- mark Reform Amendments to IFRS 9, IAS 39 and IFRS 7 (die nderungen) ver - ffentlicht und damit Phase 1 seines Pro - jekts zu den Auswirkungen der aktuellen Reform der Interbank Offered Rates (IBOR) auf die Finanzberichterstattung abge- schlossen.8 The amendments Interest Rate Benchmark ReformPhase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) were published by the IASB in August 2020. An entity shall apply these amendments when it applies the amendments to Ind AS 109. This Snapshot provides an overview of the Exposure Draft Interest Rate Benchmark Reform The term interest rate benchmark reform refers to the market-wide reform of an interest rate benchmark as described in paragraph 6.8.2 of IFRS 9 (the reform). Whilst the IASB are proposing reliefs to current IFRS, banks may need to take action before relevant reliefs become effective and reliefs may not ultimately be provided in a number of areas. Question 2 [paragraph 6.8.7 of IFRS 9 and paragraph 102G of IAS 39] Designating a component of an item as the hedged item For the reasons set out in paragraphs BC24BC27, the Board proposes amendments to the hedge accounting requirements in IFRS 9 and IAS 39 for hedges of the benchmark component of interest rate risk that is not contractually specified and that is Fixed income interest rate risk is the risk of a fixed income asset losing value due to a change in interest rates. The International Accounting Standards Board (IASB) is considering an exposure draft, which proposes limited period exceptions from IFRS 9 and IAS 39 in relation to the requirements of hedge accounting. 14 October 2020. a result of interest rate benchmark reform. Following the financial crisis, the reform and replacement of benchmark interest rates such as GBP LIBOR and other interbank offered Amendments to IFRS 9, IAS 39 and IFRS 7 have now been issued to address uncertainties related to the ongoing reform of interbank offered rates (IBOR). IFRS 16: COVID-19-Related Rent Concessions (Amendment to IFRS 16) - 1 June 2020. Companies that report under IFRS and UK GAAP and have applied hedge accounting for Assignment :2 International Financial Reporting Standards (7,8,17,32) IFRS-8: Operating Segments Overview IFRS 8 Operating. For this purpose, the term Zinterest rate benchmark reform [ refers to the market-wide reform of an interest rate benchmark as described in paragraph 6.8.2. (a) the nature and extent of risks arising from interest rate benchmark reform to which the entity is exposed, and how it manages those risks; and (b) the entitys progress in completing the transition from interest rate benchmarks to alternative benchmark rates, and how the entity is managing that transition. Appendix 2 Financial instrument disclosures when applying Interest Rate Benchmark Reform Phase 1 amendments to IFRS 9 and IAS 39 and Phase 2 amendments to IFRS 9, IAS 39, IFRS 4 and IFRS 16 (Y/E 31 December 2021) The reliefs relate to hedge accounting and At a glance . In this Exposure Draft, interest rate benchmark reform refers to this market-wide replacement of an existing interest rate benchmark, such as IBOR, with an Interest Rate Benchmark Reform proposed amendments to IFRS. IASB completes response to IBOR reform with amendments to IFRS Standards. The reform impacts also the financial debt for leasing. Snapshot: Interest Rate Benchmark Reform. The IASB completed phase one with the publication, in September 2019, of Interest Rate Benchmark Reform, Amendments to IFRS 9, IAS 39 and IFRS 7. However, application of Interest Rate Benchmark Reform Amendments to IFRS 9, IAS 39 and IFRS 7 permit the continuation of hedge accounting during the period of uncertainty arising from the interest rate benchmark reform prior to the replacement of the existing interest rate benchmarks with alternative interest rate benchmarks and the Toyota Industries will, Various interest rate benchmark reform phase 2 - 1 January 2021. For hedges of interest rate risk that are affected by interest rate benchmark reform, the Board proposes amendments to IFRS 9 and IAS 39 as described below. Exposure Draft of Interest Rate Benchmark Reform - Phase 2 (Amendments to Ind AS 109, Ind AS 107 and Ind AS 116) - (29-10-2020) Accounting Standards Board The Institute of Chartered Accountants of India 29th October, 2020: Amendment in IFRS by IASB : Developments in India (Ind AS) EFRAG is pleased to provide its opinion on the Interest Rate Benchmark Reform Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (the Amendments) that was issued by the IASB on 26 August 2020. A lessee will apply paragraph 42 of IFRS 16 as a practical expedient to account for a lease modification that is required by IBOR reform i.e. In August 2020, the International Accounting Standards Board (Board) issued Interest Rate Benchmark ReformPhase 2, which amends IFRS 9 Financial Instruments, IAS 39 Financial Endorsement Criteria Assessment: Interest Rate Benchmark Reform ReformPhase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (the Amendments) were published on 27 August 2020. Under FASBs relief for hedge accounting, any hedge ineffectiveness that occurs after the new benchmark rate will affect current period profit or loss 12. Interest rate benchmarks play an important role in global financial markets and index a variety of financial products worth trillions of dollars, The IASB has issued the Exposure Draft Interest Rate Benchmark Reform Phase 2 proposing to amend IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. This IFRS in Focus outlines the proposed amendments set out in Exposure Draft ED/2020/1 Interest Rate Benchmark Reform Phase 2: Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 published by the International Accounting Standards Board (IASB) on 9 April 2020. (a) For the reasons set out in paragraphs BC8BC15, the Board proposes exceptions for determining whether a forecast transaction is highly probable or whether it is no longer This is because the underlying contracts might need to be amended with the result that the future cash flows would be based on an alternative

IFRSStandards Exposure Draft. how are you getting ready to manage the Interest Rate Benchmark Reform? The IASB has issued further amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates, including the replacement of one benchmark rate with an alternative one. On May 25, 2020, the AcSB responded to the IASB Exposure Draft, Interest Rate Benchmark ReformPhase 2 (Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16). For hedges of interest rate risk that are affected by interest rate benchmark reform, the Board proposes amendments to IFRS 9 and IAS 39 as described below. Practical guide to Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 for interest rate benchmark (IBOR) reform The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address issues arising during the reform of benchmark interest rates including the replacement of one benchmark rate with an alternative one.