Tuesday, April 14, 2020
To assist companies in providing useful information to investors about the effects of interest rate benchmark reform on financials statements, the AASB is proposing amendments to AASB Standards through ED 299 Interest Rate Benchmark Reform — Phase 2.
The pre-replacement issues arising from the reform was addressed in AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform by amending some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the reform (Phase 1 of the project).
The proposals in ED 299 attempt to address replacement issues (Phase 2 of the project) by aiming to address issues affecting financial statements when changes are made to contractual cash flows and hedging relationships as a result of the reform.
The main proposed amendments relate to: