LIBOR phase out: 5 things you need to know

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03/26/19

Need to know more about the ways the phase out of LIBOR could affect your company? If so, you’re not alone.

Some say it’s one of the most important numbers in finance. So the replacement of LIBOR will reach far beyond the financial markets and is expected to impact the accounting and financial reporting for most companies. It’s a complex topic and companies have a lot to think about as they prepare for this change. 

In this podcast episode, PwC partner Heather Horn leads a lively discussion with Justin Keane, Chip Currie, and Nick Milone. Justin has been focused on LIBOR and reference rate reform efforts and has been on the front lines working with companies as they prepare for the change. Nick shares helpful perspective from his experience in our financial markets practice. And, Chip summarizes the key accounting issues based on his ongoing work as part of our national office.

Tune in to hear them discuss five things companies should know about the LIBOR phase out, including:

  • 1:06 - A high level overview on the background of LIBOR
  • 3:13 - How LIBOR might affect your company
  • 5:08 - The complexities of LIBOR
  • 12:08 - Key accounting and financial reporting considerations, including the impact on modification vs extinguishment, hedge accounting, and fair value, and
  • 27:08 - Recommendations on how companies should prepare for the transition. 

For more information, refer to our LIBOR page on pwc.com. You can also subscribe to our podcast series to stay current on other key technical accounting matters, business issues, current standard setting, and regulatory updates.


About our guests

Justin Keane is a principal in PwC’s Financial Markets practice. Justin’s principal areas of focus include LIBOR and reference rate reform efforts, model risk management across global jurisdictions, and strategy, risk management and valuation considerations related to governance and execution levels on derivative and complex financial instruments.


Nick Milone is a partner in PwC’s Financial Markets practice, where he advises companies on current accounting issues, developments, and the application of accounting standards. Prior to this role, Nick was a Practice Fellow at the FASB, where he was a member of the Financial Instruments Team. As part of that team, Nick worked on the hedge accounting and recognition and measurement projects.


Chip Currie is a partner in PwC’s National Professional Services Group on the financial instruments team. He is a regular contributor to many firm publications, as well as to the development of firm positions and responses to proposed accounting standards. Chip is the firm’s representative on the FASB’s TRG for credit losses and on the AICPA Depository Institution Expert Panel.


About our host

Heather is PwC’s National office thought leader, responsible for developing the communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of a range of multimedia events, including: PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as the power and utilities industry webcasts. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Contact us

Heather Horn

US Strategic Thought Leader, National Professional Services Group, PwC US

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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