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IBOR Reform and its effect on financial reporting

Description

​Interest rate benchmarks (e.g. EURIBOR) play a key role in financial markets. These benchmarks index trillions of euros in a wide variety of financial products, from derivatives to residential mortgages.

Recently such benchmarks are in the process of being replaced by alternative, nearly risk-free rates, which are based to a higher extent on transaction data.

The possible discontinuation of interest rate benchmarks could have a significant and widespread impact across financial markets, as well as in other areas where such benchmarks are used. In this context, stakeholders are considering what the effects of a discontinuation of these IBORs are on financial reporting.

The objective of this project is to monitor further developments in this regard and determine whether there are any implications for the existing accounting requirements.

The IASB is expected to publish an ED on the topic in Q2 2019.

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