The cashflow hedge accounting consequences of interest rate benchmark reform

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

EONIA

EURIBOR

TIBOR

LIBOR

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

Net investment hedges

Fair value hedge accounting

Cash flow hedge accounting

Money market hedges

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

IFRS 8

IFRS 9

IFRS 15

IFRS 17

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

Statement 1 only

Statement 2 only

Neither statement

Both statements

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

The hedged item may no longer be highly probable

None of these

Hedging documentation may not exist

The hedging relationship would no longer be able to be identified

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

That effectiveness will no longer be relevant

The benchmark used will be in line with current IFRS 9 terminology

The benchmark on which the hedged cash flows are based is not expected to change

The benchmark used will not create excessive gains or losses

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

IAS 7

No other standard

IAS 32

IAS 39

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

Statement 1 only is correct

Both statements are correct

Neither statement is correct

Statement 2 only is correct

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

Accounting periods beginning on or after 1 January 2020

Accounting periods beginning on or after 1 January 2022

Accounting periods beginning on or after 1 January 2019

Accounting periods beginning on or after 1 January 2021

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

Statement 2 only

Both statements

Statement 1 only

Neither statement

The cashflow hedge accounting consequences of interest rate benchmark reform

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

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

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

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

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

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

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

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

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

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