London Interbank Offered Rates (or LIBOR) has historically been one of the main interest rate benchmarks used in global financial markets and it underpins trillions of dollars of financial contracts. However, the way banks fund themselves has changed and consequently LIBOR is not now perceived to be a reliable benchmark for interest rates. Therefore, LIBOR as a reference rate in loan agreements or derivatives was discontinued from 31 December 2021.
The discontinuation of LIBOR and the transition to alternative benchmarks will require action from many businesses. To assist their members with this transition the Institute of Chartered Accountants in England and Wales (ICAEW) has produced several Helpsheets, articles and webinars which they are making available to members of Chartered Accountants Ireland.
The Helpsheets are in the form of questions and answers, each addressing an accountant in a particular field. Members might find the following Helpsheets particularly useful.
- 10 Accounting And Disclosures Questions Finance Should Be Asking About Libor Transition;
- 10 Questions External Auditors Should Be Asking Finance Directors About Libor Transition.;
- 10 Questions NEDs Should Be Asking About Libor Transition.
These Helpsheets and other useful material discussing the timelines and the impact of the changes can be accessed on the ICAEW webpage.
Other Sources of information and guidance
The Ulster Society of Chartered Accountants Ireland has published an article for their members.
Financial Conduct Authority
The Central Bank of Ireland
Listed below are some links to relevant articles published by member firms in Ireland.
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