FRED 74 Draft amendments to FRS 102 – Interest rate benchmark reform (Phase 2)
25 June 2020
The FRC issued FRED 74 Draft amendments to FRS 102 – Interest rate benchmark reform (Phase 2)
to respond to a current financial reporting issue.
FRED 74 proposes amendments to provide relief to minimise discontinuities in the accounting for financial instruments and leases, and avoid unnecessary discontinuation of hedge accounting as agreements are modified in order to transition to alternative benchmark rates as interest rate benchmarks are being reformed.
FRED 74 is based on similar proposals issued by the IASB, and has a proposed effective date of 1 January 2021, with early application permitted.
Comments should be provided by 30 September 2020.