Governments To Get Accounting Guidance for Libor’s Demise

The Government Accounting Standards Board is set to release proposed rule changes in September to address the demise of the benchmark interest rate known as Libor.

The proposal would add two new reference rates to the board’s rules: the Secured Overnight Financing Rate (SOFR) and the effective federal funds rate, said board Chairman David Vaudt Aug. 12 at the Governmental Accounting and Auditing Conference in Washington. The board is also considering whether to delete the London Inter-Bank Offered Rate (Libor) from the rules and when to make that change effective.

• The standards board is debating whether to exempt government entities ...