The cashflow hedge accounting consequences of interest rate benchmark reform

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. Which of the following benchmarks is expected to be discontinued by the end of 2021?

  2. Which of these areas is the focus of the exposure draft?

  3. Which of the following standards would be affected by the proposals?

  4. Which, if any, of the statements is/are true? Statement 1 - The IASB exposure draft looks at pre-replacement issues. or Statement 2 - The IASB exposure draft does not look at replacement issues

  5. Which of the following is a problem arising with the hedge accounting requirements relating to interest rate benchmark uncertainty?

  6. What is the key assumption being made regarding the potential changes in relation to hedge accounting?

  7. In addition to IFRS 9, what other standard will be affected by the changes?

  8. Which, if any, of the following statements is correct? Statement 1 - Gains or losses on cash flow hedge arrangements are taken to profit or loss, or Statement 2 - The hedged item cannot be just a component of an item, it must the entire item

  9. When is the proposed date for the changes to be effective?

  10. Which, if any, of the following statements is/are true? Statement 1 - The IASB are aiming to prevent entities from having to discontinue hedge accounting based on the interest rate benchmark uncertainty, or Statement 2 - The biggest area of disagreement related to the retrospective assessment of effectiveness