Globally, many jurisdictions have been taking steps for replacing existing Interbank offered rates (IBORs) with some alternate benchmark rates as a result of recommendations of Financial Stability Board. In this regard, IASB identified two groups of accounting issues that could affect financial reporting due to the reform:
Project Phase |
Amendment in IFRS by IASB |
Developments in India (Ind AS) |
Phase 1- Pre-replacement issues Issues affecting financial reporting in the period during which there is uncertainty about contractual cash flows arising from the reform |
Sep 2019: Amendments to: - IFRS 9, Financial Instruments - IFRS 7, Financial Instruments: Disclosures - IAS 39, Financial Instruments: Recognition and Measurement |
Corresponding amendments have been notified by MCA in Ind As 109 and Ind AS 107 that are effective from April 1, 2020:
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Phase 2- Replacement issues Issues affecting financial reporting when the uncertainty about contractual cash flows is resolved and hedging relationships are affected as a result of the reform. |
Aug 2020: Amendments to provide practical expedient for particular changes to contractual cash flows and relief from specific hedge accounting requirements: IFRS 9, IFRS 7, IAS 39, IFRS 4, Insurance Contracts and IFRS 16, Leases are amended |
Corresponding amendments in Ind AS 109, Ind AS 107 and Ind AS 116 are proposed to be made effective from April 1, 2021.
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Further, comments on the abovementioned Exposure Draft may be submitted through any of the following modes:
1 |
Electronically: |
Click on 'submit a comment letter' below (Preferred method) |
2 |
Email: |
Comments can be sent to: commentsasb@icai.in |
3 |
Postal: |
Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002 |
Further clarifications on this Exposure Draft may be sought by e-mail to asb@icai.in.
The Exposure Draft is open for comment until 30th November, 2020
Due process documents |
Exposure Draft of Interest Rate Benchmark Reform Phase 2 (Amendments to Ind AS 109 Ind AS 107 and Ind AS 116) [PDF] |