Bidding farewell to LIBOR: What you need to know

02/23/21

LIBOR is going away...but what does that really mean? Hear PwC discuss the LIBOR phase-out and steps companies can — and should — take now.

With the discontinuance of LIBOR in sight, there are things companies should be doing today to ensure a smooth transition. Host Heather Horn is joined by PwC partners Chip Currie and David Challen to discuss some of the business and accounting issues that need to be thought through prior to LIBOR going away.

Topics include:

1:01 - Background. We start with a refresher on the basics: what is LIBOR and why are we talking about it now?

4:54 - Timing. We discuss the estimated LIBOR transition timeline.

6:24 - Act now. Chip discusses what companies should be doing today to prepare for the change.

8:33 - Replacement rates. David highlights key differences between LIBOR and possible replacement benchmark rates, such as SOFR.

11:15 - Legacy LIBOR contracts. Lots of LIBOR references in legacy contracts? We talk you through next steps.

13:56 - Accounting issues. The accounting side of the LIBOR phase-out is complicated. Chip covers some of the accounting issues companies need to be thinking about now and some of the relief that’s available.

16:08 - Focus areas. It’s hard knowing how to start. We close with key takeaways for where finance teams should be focusing their attention first.

Want to learn more? Visit our LIBOR page, read our Reference rate reform guide, and listen to our podcast, Contracts filled with LIBOR references? Now what?

View full podcast series

About our guest

Chip Currie is a Partner in PwC’s National Office with over 20 years of experience assisting companies in resolving complex business and accounting issues. He concentrates on the accounting for financial instruments under both current and emerging standards and works with many of the firm's largest financial services clients and a number of non-financial service clients on treasury-related matters.

David Challen is a Partner in PwC’s National Office, hailing from the Banking Capital Markets practice in New York. He has worked with clients ranging from large, multinational banking institutions to broker-dealers and asset management advisors and funds and currently focuses on consultations related to financial instruments.

About our host

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With nearly 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.