Accounting Standard AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2
Main features of this StandardMain features of this Standard
Start here
Get a plain-English read of Main features of this Standard
Turn the raw legal text into a practical explanation grounded in Accounting Standard AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2.
Main features of this Standard
Main requirements
This Standard amends the Standards listed to help entities to provide financial statement users with useful information about the effects of the interest rate benchmark reform on those entities’ financial statements.
As a result of these amendments, an entity:
(a) will not have to derecognise or adjust the carrying amount of financial instruments for changes required by the reform, but will instead update the effective interest rate to reflect the change to the alternative benchmark rate;
(b) will not have to discontinue its hedge accounting solely because it makes changes required by the reform, if the hedge meets other hedge accounting criteria; and
(c) will be required to disclose information about new risks arising from the reform and how it manages the transition to alternative benchmark rates.
Application date
This Standard applies to annual reporting periods beginning on or after 1 January 2021. Earlier application is permitted.