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IBOR Workshop-Pre Test

The document is a test on IBOR reform and hedge accounting under PSAK 71. It covers questions about which interest rate benchmarks are expected to be discontinued by 2023, the replacement rate for JIBOR, conditions for applying the practical expedient under the PSAK amendment on IBOR reform, additional disclosure requirements under the PSAK 71 amendment, identifying the type of hedge PT A can apply in a cross currency swap example, requirements for hedge effectiveness, the definition of rebalancing in hedge accounting, and the criteria to apply hedge accounting.

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76 views7 pages

IBOR Workshop-Pre Test

The document is a test on IBOR reform and hedge accounting under PSAK 71. It covers questions about which interest rate benchmarks are expected to be discontinued by 2023, the replacement rate for JIBOR, conditions for applying the practical expedient under the PSAK amendment on IBOR reform, additional disclosure requirements under the PSAK 71 amendment, identifying the type of hedge PT A can apply in a cross currency swap example, requirements for hedge effectiveness, the definition of rebalancing in hedge accounting, and the criteria to apply hedge accounting.

Uploaded by

Ekhlesia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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IBOR Medco Workshop - Pre Test

Total points60/80
 

 
What is the IBOR rate that is expected to be discontinued by 30 June 2023? *
10/10
GBP LIBOR of all tenors
USD LIBOR for tenors of overnight, 1, 3, 6 and 12-month
 
USD LIBOR for tenors of 1-week and 2-month
EUR LIBOR of all tenors

 
What is the rate that Bank Indonesia publish to replace the overnight Jakarta
Interbank Offered Rate (JIBOR)? *
10/10
SONIA
IBOR
IndONIA
 
SOFR

 
There are terms and conditions which need to be fulfilled in order to apply the
practical measure/practical expedient of PSAK amendment related to IBOR reform.
What is/are the condition? *
10/10
The changes are necessary as direct consequence of interest rate benchmark reform
The changes are not considered as substantial modification under relevant PSAK
New and previous basis for determining the contractual cash flows are economically
equivalent
A & C are the required conditions
 
 
PSAK Amendment IBOR Reform Phase 2 requires additional disclosures to enable
users of financial statements to understand .... *
10/10
The entity’s progress in completing the transition to alternative benchmark rates, and how the
entity is managing the transition
The nature and extent of risks to which the entity is exposed arising from financial instruments
subject to interest rate benchmark reform and how the entity manages these risks.
The impact to P/L and OCI due to the changes of interest rate benchmark as consequences of
the IBOR Reform
A and B
 
B and C

 
PT A, the IDR functional currency entity, issued bonds with floating interest rate 3M
Libor + 100 bps in USD. On the same day, PT A conduct Cross Currency Swap
(CCS) to exchange payments of interest and principal at maturity on bonds into
IDR and 6% fixed rate. What type of hedge accounting that PT A can applied? *
10/10
Cash flow hedge
 
Fair value hedge
Net investment in foreign operation
None of the above

 
The following are the requirements of hedge accounting effectiveness under PSAK
71, except: *
0/10
Existence of economic relationships between the hedging instrument and the hedged item
Credit risk does not dominate value changes in the relationship
 
Hedge relationship is expected to be highly effective
Designated hedge ratio is consistent with risk management strategy

 
What is rebalancing in relation of hedge accounting under PSAK 71? *
0/10
Adjustment to value of designated hedged item and the hedging instrument which will allow
entities to have more stable PL figures from existing hedge relationship
 
Adjustment to designated quantities of hedged item or hedging instruments of an existing
relationship to maintain hedge ratio to comply with the hedge effectiveness requirements
Adjustment to the hedge documentation to ensure that the hedged risk is balanced with the
hedging instrument after any changes in economic relationship
Adjustment to hedge ratio for prospective assessment of a hedging relationship

 
The following is criteria to apply hedge accounting: *
10/10
Hedging relationship consists only of eligible hedging instruments & eligible hedged items
At inception of the hedging relationship, there is a formal designation and documentation of
the hedging relationship
The hedging relationship meets all of the hedge effectiveness requirements
All of the above

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