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Accounting Standard AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2
Amendments to AASB 7 Financial InstrumenAmendments to AASB 7 Financial Instruments: Disclosures
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Amendments to AASB 7 Financial Instruments: Disclosures
| Paragraphs 24I–24J and 44GG–44HH are added and a subheading is added before paragraph 24I. For ease of reading these paragraphs have not been underlined. |
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Other disclosures
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Additional disclosures related to interest rate benchmark reform
24I To enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy, an entity shall disclose information about:
(a) the nature and extent of risks to which the entity is exposed arising from financial instruments subject to interest rate benchmark reform, and how the entity manages these risks; and
(b) the entity’s progress in completing the transition to alternative benchmark rates, and how the entity is managing the transition.
24J To meet the objectives in paragraph 24I, an entity shall disclose:
(a) how the entity is managing the transition to alternative benchmark rates, its progress at the reporting date and the risks to which it is exposed arising from financial instruments because of the transition;
(b) disaggregated by significant interest rate benchmark subject to interest rate benchmark reform, quantitative information about financial instruments that have yet to transition to an alternative benchmark rate as at the end of the reporting period, showing separately:
(i) non-derivative financial assets;
(ii) non-derivative financial liabilities; and
(iii) derivatives; and
(c) if the risks identified in paragraph 24J(a) have resulted in changes to an entity’s risk management strategy (see paragraph 22A), a description of these changes.
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Effective date and transition
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44GG AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2, which amended AASB 4, AASB 7, AASB 9, AASB 16 and AASB 139, issued in September 2020, added paragraphs 24I–24J and 44HH. An entity shall apply these amendments when it applies the amendments to AASB 4, AASB 9, AASB 16 or AASB 139.
44HH In the reporting period in which an entity first applies AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2, an entity is not required to disclose the information that would otherwise be required by paragraph 28(f) of AASB 108.