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28/08/2020 - EFRAG requests comments on its Draft Endorsement Advice on IBOR Phase 2 (amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16)

​EFRAG is consulting on its assessments of Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) against the technical criteria and whether the Amendments are conducive to the European public good. Comments are requested by 7 September 2020. EFRAG invites constituents to participate to a public outreach event on 7 September (16.30) to provide their comments. 

​EFRAG has issued a Draft Endorsement Advice letter and a separate Invitation to Comment relating to the endorsement for use in the EU of Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) ('the Amendments').

The Amendments are needed to avoid the discontinuation of hedge accounting relationships solely due to the impacts of the Interest Rate Benchmark Reform, to properly account for modifications of financial instruments and lease contracts accounted for under IFRS and to deal with the implications on hedge accounting arising from the reform.

The Amendments become effective for annual periods beginning on or after 1 Ja​nuary 2021, with earlier application permitted.

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement.

EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

Given the urgency of the matter, EFRAG is substantially reducing the consultation period. 

Comments are requested by 7 September 2020. You can comment on EFRAG's Draft Endorsement Advice, and the accompanying Invitation To Comment by clicking on the 'Comme​nt publication' links below.

The Draft Endorsement Advice can be found here and the Invitation to Comment h​ere.

EFRAG has also updated its Endorseme​nt Status Report, which can be downloaded here on EFRAG's web page.​

To help obtain stakeholder input from EFRAG's Draft Endorsement Advice, a public outreach will be held on Monday 7 September from 16:00 till 17:30 CEST. The link to register to the event can be found h​ere