Accounting Relief Aims to Ease Impact of Libor’s Demise (1)

Businesses reworking trillions of dollars worth of loans and derivatives tied to the scandal-tinged London Interbank Offered Rate (Libor) got relief Thursday on one part of the major undertaking: accounting for the changes.

The Financial Accounting Standards Board published a package of simplifications meant to ease the transition from Libor to new benchmark interest rates like the Secured Overnight Financing Rate (SOFR).

Regulators plan to phase out Libor by the end of 2021.

The relief, issued as ASC 848, applies to accounting for contract modifications and hedging relationships.

In an unusual move, three ...