The International Accounting Standards Board has amended some of its hedge accounting requirements. The amendments are designed to support the provision of useful financial information by companies during the period of uncertainty arising from the phasing out of interest-rate benchmarks such as interbank offered rates (IBORs).
The Board has amended its new and old financial instruments standards – IFRS 9 Financial Instruments, and IAS 39 Financial Instruments: Recognition and Measurement, as well as the related standard on disclosures IFRS 7 Financial Instruments: Disclosure.
The amendments modify some specific hedge accounting requirements to provide relief from potential effect of the uncertainty caused by the IBOR reform. In addition, the amendments require companies to provide additional information to investors about their hedging relationships, which are directly affected by these uncertainties.
The amendments come into effect from 1 January 2020, but companies may choose to apply them earlier.
