Source: RSM US LLP. PBMares is a member of RSM US Alliance.
FINANCIAL REPORTING INSIGHTS
The white paper, Financial institutions: Fundamentals of LIBOR phase out and transition, has been updated to reflect the following:
- The revised timing for phasing out certain London Interbank Offered Rates (LIBOR) used as a reference rate in financial contracts
- The formal recommendation made by the Alternative Reference Rates Committee to use the CME Group’s forward-looking Secured Overnight Financing Rate term rates as a preferred alternative reference rate for term rates
- The recommendations and statements made by a number of supervisory agencies with respect to the use of LIBOR in new or modified contracts
For information about accounting for the effects of reference rate reform in general, refer to the following white paper, Optional accounting expedients can make LIBOR transition easier.
This article was written by RSM US LLP and originally appeared on 2021-11-04.
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