The discontinuation of LIBOR will have a broad impact on a company's financial statements. Regulators also are highlighting the importance of communicating the company’s transition progress to its customers.
In a new KPMG paper, 2021 Outlook: SEC and regulator focus on LIBOR disclosures in 10-Ks, we reviewed how organizations are preparing for the transition to a new reference rate and found that a number of banks and companies have enhanced their LIBOR reform risk disclosure. But our analysis only reinforced the concerns that the discontinuation of LIBOR will present risks that require attention across multiple frontline units of each organization.
