SEC staff statement on LIBOR transition
The SEC staff provides information for companies to consider as the LIBOR transition date approaches. Companies are encouraged to 'identify, evaluate and mitigate' potential issues to avoid major disruptions.
Staff statement on LIBOR transition:
A transition away from LIBOR is expected at the end of 2021, which could cause a major disruption to global financial markets.
- Companies are encouraged to search for areas within their organization where the LIBOR transition could have a significant impact and begin work now to avoid future problems.
- The SEC staff encourages companies to provide robust disclosure of their efforts and potential impacts of the transition to investors.
- Work has begun in various global jurisdictions to identify preferred alternative benchmark rates.
- The FASB and IASB have taken first steps toward permitting the use of alternative benchmarks.
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