Risks Associated with the Transition to and Discontinuation of LIBOR and Other Interest Rate Benchmarks
First written in FY2021. 3 of 7 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2023: 1 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「The transition from LIBOR to successor rates has been completed.」
The Company explicitly stated that the transition to successor rates had been completed in connection with interest rate benchmark reform. - FY2024-Q1RestatedAnnual report
「From the third quarter of the fiscal year ended March 2022, the Company and its subsidiaries have applied certain optional practical expedients related to contract modifications and hedge accounting, primarily to reduce the administrative burden of accounting for contract modifications associated with replacing reference rates affected by interest rate benchmark reform. The application of these updates had no material effect on the operating results or financial position of the Company and its subsidiaries.」
The Company continues to apply optional practical expedients for contract modifications and hedge accounting associated with interest rate benchmark reform and expects no material effect. - FY2023-Q2RestatedAnnual report
「From the third quarter of the previous consolidated fiscal year, the Company and its subsidiaries have applied certain optional practical expedients related to contract modifications and hedge accounting, primarily to reduce the administrative burden of accounting for contract modifications associated with replacing reference rates affected by interest rate benchmark reform. The application of these updates had no material effect on the operating results or financial position of the Company and its subsidiaries. In addition, no material effect is expected in future reporting periods.」
The Company continues to apply optional practical expedients for contract modifications and hedge accounting associated with interest rate benchmark reform and expects no material effect. - FY2022MitigatedAnnual report
「The transition from LIBOR and other interest rate benchmarks to successor rates has been completed, except for certain tenors of US dollar LIBOR whose cessation date was extended to the end of June 2023.」
The Company disclosed that the transition to successor rates had been completed, except for certain US dollar LIBOR settings whose publication had been extended to the end of June 2023. - FY2022-Q3MitigatedAnnual report
「From the third quarter of the current consolidated fiscal year, the Company and its subsidiaries have applied certain optional practical expedients related to contract modifications and hedge accounting, primarily to reduce the administrative burden of accounting for contract modifications associated with replacing reference rates affected by interest rate benchmark reform. The application of these updates had no material effect on the operating results or financial position of the Company and its subsidiaries.」
The Company disclosed that, for contract modifications and hedge accounting associated with interest rate benchmark reform, it had applied certain optional practical expedients from the third quarter and that there had been no material effect. - FY2022-Q2RestatedAnnual report
「The Company and its subsidiaries had not applied these updates as of the end of the second quarter of the current consolidated fiscal year. The Company and its subsidiaries plan to apply these updates during the transition period for interest rate benchmarks. The effects of applying these updates on the operating results and financial position of the Company and its subsidiaries are currently under investigation.」
The accounting practical expedients related to the reform of LIBOR and other interest rate benchmarks had not been applied as of the end of the current quarter. The Company plans to apply them during the transition period and continues to assess their effects. - FY2021First statedAnnual report
「The UK's Financial Conduct Authority (FCA), the supervisory authority for LIBOR, announced that it would not exercise its power to compel banks to submit rates for LIBOR after 2021. In addition, the cessation date for certain tenors of US dollar LIBOR was extended by 18 months.」
For the first time, the effects of the discontinuation of LIBOR and other benchmarks and the transition to successor rates on contracts, hedges, financial markets, financial position and operating results have been identified as a standalone risk.