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Amendments to international accounting standards adopted by UK

The UK adopted changes to accounting standards relating to interbank offered rates reform and the exemption from applying IFRS 9, Financial Instruments.

UK regulator the Financial Reporting Council has set out how the government has adopted two sets of amendments to international accounting standards for their use in the UK.

Interest rate benchmark reform — phase 2 (amendments to IFRS 9, Financial Instruments; IAS 39, Financial Instruments: Recognition and Measurement; IFRS 7, Financial Instruments: Disclosures; IFRS 4, Insurance Contracts; and IFRS 16, Leases)

The amendments focus on the effects on financial statements when an entity replaces the old interest rate benchmark with an alternative benchmark rate as a consequence of the global regulatory reform of key interbank offered rates.

These amendments are effective for annual periods beginning on or after 1 January 2021, with early application permitted.

Extension of the temporary exemption from applying IFRS 9, Financial Instruments (amendments to IFRS 4, Insurance Contracts)

The amendments extend the expiry date of the temporary exemption from applying IFRS 9, Financial Instruments, from 1 January 2021 to 1 January 2023. The changes are to align the effective dates of IFRS 9 with IFRS 17, Insurance Contracts, for entities within the scope of the exemption.

Oliver Rowe (Oliver.Rowe@aicpa-cima.com) is an FM magazine senior editor.