Contractual and Hedge Accounting Risks Associated with the Cessation of USD LIBOR Publication
First written in FY2022. 1 of 3 entries say "Mitigated", first in FY2023. Latest entry: FY2024.
The whole theme swung hardest in 2023: 1 of 12 companies on the "Worse" side.
2 other companies' latest entry also says "Achieved".
- FY2024AchievedAnnual report
「Publication of all LIBOR rates for interbank funding transactions in the London market ceased with the end of US dollar LIBOR publication in June 2023. The group completed amending contracts for financial assets and liabilities using LIBOR that it held at the end of the previous fiscal year. Accordingly, as of the end of the current fiscal year, there were no financial instruments that had not transitioned to alternative interest-rate benchmarks.」
Contract amendments for financial assets and liabilities using LIBOR, including US dollar LIBOR, were completed, leaving no financial instruments yet to be transitioned. - FY2023MitigatedAnnual report
「By the end of December 2021, publication of LIBOR for interbank funding rates in London-market financial transactions denominated in currencies other than US dollars had ceased, and the company had completed amending contracts for financial assets and liabilities using that LIBOR. Publication of US dollar LIBOR is scheduled to cease at the end of June 2023, but the company has completed identifying contracts for financial assets and liabilities using US dollar LIBOR across its business segments and group companies, and expects to complete amending those contracts by the end of June 2023.」
Contract amendments for non-US dollar LIBOR have been completed, and completion of contract amendments for US dollar LIBOR by the end of June 2023 was expected. Non-derivative financial liabilities yet to be transitioned were ¥667.18 billion. - FY2022First statedAnnual report
「Publication of US dollar LIBOR is scheduled to cease at the end of June 2023. The company has completed identifying contracts for financial assets and liabilities using US dollar LIBOR across its business segments and group companies, and is proceeding with amendments to those contracts.」
Regarding the planned discontinuation of US dollar LIBOR publication at the end of June 2023, the company disclosed as risks the uncertainty over applicable interest rates if contract amendments are not completed, and the impact on hedge accounting and borrowing costs. Balances yet to be transitioned were ¥13.879 billion in financial assets and ¥716.36 billion in financial liabilities.