Risk of LIBOR cessation and transition to alternative reference rates
First written in FY2022. 1 of 3 entries say "Worsened", first in FY2023. Latest entry: FY2024.
The whole theme swung hardest in 2023: 1 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Achieved".
- FY2024AchievedAnnual report
「Accordingly, as of the end of the consolidated fiscal year, there were no financial instruments referencing LIBOR that had not transitioned to alternative reference rates.」
Regarding the risk of LIBOR cessation and transition to alternative reference rates, there were no remaining financial instruments that had not transitioned, and the transition process was completed. - FY2023WorsenedAnnual report
「Transactions applying cash flow hedge accounting are affected by interest rate benchmark reform because they have not yet transitioned to alternative reference rates, with borrowings referencing US dollar LIBOR designated as the hedged items and interest rate and currency swaps as the hedging instruments. As of 31 March 2023, the notional amount of the interest rate and currency swaps referencing US dollar LIBOR in these transactions was ¥82,788 million.」
Regarding the risk of LIBOR cessation and transition to alternative reference rates, the transition remained incomplete, and the notional amount of swaps referencing US dollar LIBOR increased from the previously disclosed ¥75,881 million to ¥82,788 million. - FY2022First statedAnnual report
「Transactions applying cash flow hedge accounting are affected by interest rate benchmark reform because they have not yet transitioned to alternative reference rates, with borrowings referencing US dollar LIBOR designated as the hedged items and interest rate and currency swaps as the hedging instruments. As of 31 March 2022, the notional amount of the interest rate and currency swaps referencing US dollar LIBOR in these transactions was ¥75,881 million.」
Identified uncertainty surrounding hedge accounting and the transition of interest rate benchmarks following the cessation of LIBOR publication as a separate risk. Publication of some US dollar LIBOR settings was scheduled to cease at the end of June 2023, and preparations for the transition to alternative benchmarks were under way.