IBOR Reform Phase 2

Recorded on Wed 30th Sept

Details

IBOR Reform poses many challenges from an accounting standpoint.

The final amendments to IFRS Standards for the Interest Rate Benchmark Reform – Phase 2, published in August 2020, provide relief for these financial reporting issues when IBORs are replaced with alternative benchmark rates. The need for market participants to prepare for a post-IBOR era has been emphasised by many regulators. However, understanding and implementing those amendments may prove to be challenging.

Pauline Pelissier, Nicolas Millot and Christos Sortsis from Mazars discussed the technical aspects along with the operational application of theses IFRS amendments in relation to changes to contractual cash flows on financial instruments, specific hedge accounting reliefs and disclosures.