The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR.
On 26 September 2019, the International Accounting Standards Board (IASB) issued amendments to International Financial Reporting Standard (IFRS) 9, Financial Instruments, International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement and IFRS 7, Financial Instruments: Disclosures.
The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the Inter-Bank Offer Rates (IBOR) reform. Additionally, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties.
The amendments will be effective for annual reporting periods beginning on or after 1 January 2020. Early application is permitted.
This issue of First Notes provides a summary of the amendments made by the IASB.
To access the text of the IASB notification, please click here.
Also refer KPMG International’s web article on ‘IBOR reform - First-phase amendments issued’ dated 27 September 2019.
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