On 15 January 2019, Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform were endorsed by the European Commission for use in the European Union. The EU effective date is the same as the IASB’s effective date (annual periods beginning on or after 1 January 2020). Earlier adoption of Amendments is permitted.
Amendments to IFRS 9, IAS 39 and IFRS 7 have been published as a reaction to the potential effects the reform of Interbank offered rates (IBORs) could have on financial reporting. Amendments are mandatory for all hedging relationships that are directly affected by the interest rate benchmark reform. The changes modify specific hedge accounting requirements so that entities would apply those hedge accounting requirements assuming that the interest rate benchmark on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a result of interest rate benchmark reform.
The amendments are effective for annual periods beginning on or after 1 January 2020, with early application permitted. The amendments are applied retrospectively.
We informed you in detail about these amendments in the Accounting News in October 2019.
Sources: www.iasplus.com, Amendments to IFRS 9, IAS 39 and IFRS 7
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