NZASB ED 2020-5

  • Not-for-profit
  • Public Sector

PBE Interest Rate Benchmark Reform—Phase 2

 The New Zealand Accounting Standards Board (NZASB) has published NZASB ED 2020-5 PBE Interest Rate Benchmark Reform—Phase 2.

The Phase 1 amendments to PBE Standards, which were issued in February 2020, dealt with issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark (also referred to as pre-replacement issues).

The proposed Phase 2 amendments to PBE Standards set out some practical expedients and exceptions to address replacement issues (such as potential derecognition of financial instruments and potential disruption to hedge accounting relationships). The Phase 2 amendments also propose some disclosures about risks arising from the reform and how an entity is managing the transition to alternative benchmark rates. More entities might have need of the Phase 2 amendments than the Phase 1 amendments.

The standards that would be amended are PBE IPSAS 41 Financial Instruments, PBE IFRS 9 Financial Instruments, PBE IPSAS 29 Financial Instruments: Recognition and Measurement and PBE IPSAS 30 Financial Instruments: Disclosures.


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.

This ED has a short 45-day comment period.  The short comment period reflects the urgency of these issues for affected entities.

Send your comments—both formal and informal—by 26 October 2020 to the NZASB using the form below.


Upload your submission here

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  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

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