NZASB ED 2019-5

PBE Interest Rate Benchmark Reform

Proposed amendments to PBE IPSAS 41, PBE IFRS 9, PBE IPSAS 29 and PBE IPSAS 30

The New Zealand Accounting Standards Board (NZASB) has published for public comment NZASB ED 2019-5 PBE Interest Rate Benchmark Reform.

Few PBEs are expected to require the relief offered by these amendments – the proposals are relevant for Tier 1 and 2 PBEs that apply hedge accounting and are affected by uncertainty arising from the phasing out of interest-rate benchmarks such as interbank offered rates (IBORs).

The proposed amendments mirror recent amendments to NZ IFRS. They modify some specific hedge accounting requirements to provide relief from potential effects of the IBOR reform. They also require additional information about the hedging relationships which are directly affected by these uncertainties.

The standards that would be amended are PBE IPSAS 41 Financial Instruments, PBE IFRS 9 Financial Instruments,and PBE IPSAS 29 Financial Instruments: Recognition and Measurement, as well as the related standard on disclosures, PBE IPSAS 30 Financial Instruments: Disclosures.

Accessing the Consultation Documents

Commenting on the Proposals

The NZASB encourages you to read the ED and accompanying Invitation to Comment, and to comment on the proposals.

Send your comments—both formal and informal—by 14 January 2020 to the NZASB using the secure upload form below.

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